Ofcom finds RedBird IMI Telegraph bid posed public interest risks for UK media

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Ofcom: Telegraph bid risks

Highlights

Ofcom concludes RedBird IMI's proposed Telegraph takeover posed risks to accurate news presentation and free opinion due to UAE government ties.
The UK government in 2024 bans foreign state ownership of newspapers following Ofcom and CMA reports, ending RedBird IMI's bid; Axel Springer acquires the Telegraph for £575mn.
IMI rejects Ofcom's findings, citing legal guarantees of editorial independence and an independent Editorial Trust with veto over editor-in-chief appointments.

Regulatory findings on the failed takeover

As reported by Financial Times, citing Ofcom, the watchdog concludes in a partially redacted report that RedBird IMI's proposed acquisition of the Telegraph could have created risks to the accurate presentation of news and to free expression of opinion in the UK. The regulator says the United Arab Emirates has clear incentives to use an influential UK newspaper to encourage positive coverage of its commercial interests, which it notes are extensive in Britain.

Ofcom and the Competition and Markets Authority publish the findings on Friday in relation to RedBird IMI, a joint venture between private equity firm RedBird Capital and Abu Dhabi media investor IMI. The report also cites a significant overlap in personnel between IMI and the UAE government, and says the UAE government's track record indicates there may be a culture of restricting free expression.

Sheikh Mansour bin Zayed Al Nahyan, vice-president of the UAE, owns IMI and Manchester City. Concerns about the activities of the UAE's National Media Council, including alleged involvement in censorship of domestic media, are also submitted during Ofcom's consultation process, the watchdog says.

Political and industry implications in the UK

The findings land at a sensitive moment for UK-UAE relations. The article says the backdrop includes a ruling last month by an independent commission that Abu Dhabi-owned Manchester City is guilty of serious breaches of Premier League spending rules over a nine-year period.

The former Conservative government decides in 2024, after receiving the CMA and Ofcom reports, to outlaw foreign state ownership of UK newspapers, effectively ending RedBird IMI's attempt to buy the broadsheet. The Telegraph is acquired by German media group Axel Springer earlier this year for £575mn.

IMI says it completely rejects Ofcom's conclusions, arguing that the watchdog judges the firm on its origin rather than its conduct. The company also says Ofcom gives no weight to legally binding permanent undertakings, including a guarantee never to influence editorial decisions at the Telegraph and an independent Editorial Trust with veto power over the appointment and removal of the editor-in-chief.

Our earlier coverage of how wars in Ukraine and the Middle East are reshaping global trade highlighted that companies are redesigning supply chains and shipping routes to reduce exposure to future shocks. We noted the WTO’s view that these shifts could persist beyond the immediate conflicts, even as AI-related demand helps support the outlook for global merchandise trade growth amid ongoing uncertainty.

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