Britain's media regulator Ofcom found that an Abu Dhabi-backed consortium's attempt to buy the Telegraph may not have been in the public interest, citing the United Arab Emirates' record on press freedom and 'clear incentives' for the state to influence the newspaper's coverage. The findings, published alongside the Competition and Markets Authority (CMA), examined Red Bird IMI's proposed acquisition of the Telegraph Media Group more than two years after ministers blocked the deal. The joint venture between Red Bird Capital and Abu Dhabi media investor IMI raised concerns due to its links to the UAE. Sheikh Mansour bin Zayed Al Nahyan, vice-president of the UAE, owns IMI and Manchester City. Ofcom concluded there was 'a clear incentive for any state, including the UAE, to use an influential UK newspaper to encourage positive coverage of UAE government commercial interests', noting a 'significant overlap in personnel' between IMI and the UAE government. The report highlighted concerns that IMI could influence the Telegraph's editorial line against the public interest, pointing to a 'culture of restricting free expression' in the UAE. IMI rejected the findings, accusing Ofcom of judging the firm based on its origin rather than conduct. The former Conservative government subsequently banned foreign state ownership of UK newspapers in 2024, effectively blocking the £575mn deal. The Telegraph was later acquired by German media group Axel Springer.
Ofcom and the CMA reported concerns about Red Bird IMI gaining control of the Telegraph on account of its links to the UAE. Sheikh Mansour bin Zayed Al Nahyan, vice-president of the UAE, owns IMI and Manchester City. In a partially redacted report, Ofcom concluded that there was 'a clear incentive for any state, including the UAE, to use an influential UK newspaper to encourage positive coverage of UAE government commercial interests', which it noted were extensive in Britain.
IMI accused the media watchdog of 'conflating the commercial interests of a private company with the conduct of a sovereign state', stating that Ofcom gave no weight to its legally binding undertakings, including a guarantee never to influence editorial decisions and an independent Editorial Trust with veto power over the Editor-in-Chief appointment.
Source: Financial Times Companies · Summarized by HeadlinesBriefing