Telegraph's ownership puzzle: Middle East deal creates year-long media mystery
British newspaper Telegraph stuck in complex ownership situation after UAE-backed deal got blocked last year. Current negotiations with new buyer face major hurdles while paper stays in business-decision limbo
A year ago British media landscape got shaken-up when Culture Secretary blocked UAE-backed RedBird IMIʼs attempt to get Telegraph newspaper (this created quite a mess in media circles)
The deals structure was complex: RedBird IMI planned to pay-off £1.2bn Barclay family debt to Lloyds Bank and convert half into ownership‚ but government stepped-in with public interest notice; new laws appeared in spring blocking foreign state control
Dovid Efune from The New York Sun leads current buying talks‚ yet his funding sources remain unclear. Earlier Sir Paul Marshall got Spectator magazine for £100m while Lord Saatchiʼs £350m newspaper bid didnt work out
The situation got more complex when:
- Original advisers distance themselves from deal
- Weekly status calls bring no progress
- Funding discussions face difficulties
- Price expectations stay high
Telegraph keeps making money — £54.2m profit last year — but cant make big business choices. “Like a drifting ghost-ship in Pirates of the Caribbean“ says media expert Alice Enders
New Culture Secretary Lisa Nandy needs to finish rules about foreign investment caps in UK media. Some want 5% limit; others ask for 10% threshold for diverse businesses. Meanwhile Sir Keir Starmer plans UAE trip next month which might affect the whole situation
Its very detrimental to people who work there and to be stuck in this sort of limbo for more than a year already is not good for the organisation
