UK government was ‘scared’, says man behind failed UAE-backed Telegraph bid | Telegraph Media Group
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The former CNN executive, who oversaw the failed bid for the Telegraph newspaper by a UAE-backed consortium, suggested the government was unwilling to heed assurances of editorial neutrality.
Jeff Zucker said there were figures in the UK who were “frightened” by the £600m deal, which would have seen the Abu Dhabi-backed RedBird IMI consortium take control of the Telegraph and Spectator.
The deal was effectively killed by new legislation proposed by the government which blocks foreign countries from owning UK newspaper assets. RedBird IMI announced last month that a takeover of the group was “no longer possible”.
Speaking at Truth Tellers, the Sir Harry Evans investigative journalism summit in central London on Wednesday, Zucker said RedBird IMI had made “the strongest possible representations to the government here in the UK that there would be no influence” from United Arab Emiratesand that the investor was prepared to make these guarantees “legally binding”.
He said it was reasonable to question the deal, but added: “I think it’s also reasonable for others to listen to the answers. Whether they were ready to hear the answers here is a different story.
Asked why some people didn’t think it was a good idea and were worried the UAE was having undue influence in the UK media, he said: “I don’t know if they didn’t think it was a good idea. I think they were afraid of it.”
RedBird IMI effectively took control of the Telegraph newspapers and the Spectator magazine in December when paid back the debts to their owners, the Barclays, including a £600m loan. Its withdrawal from a full takeover of the business will trigger another round of bidding from interested parties.
Speaking to the Guardian, Zucker said the reaction to the offer was “surprising” after a year in which “more than 1,000 journalists in the UK lost their jobs”. “It’s surprising to me at a time when journalism needs investment, capital, innovation and experience,” he said. “That’s what we’ve been able to bring to the table, and I think a lot of people who are smart and have the foresight will eventually figure that out.”
The takeover of the Telegraph by RedBird IMI, widely regarded as the Conservative Party’s flagship magazine, has been vocally opposed by many Tory MPs and peers who have raised concerns about free speech and the influence of the UAE, which provides financial backing for 75% of the investment firm.
The concerns prompted the government to drafted legislation in March blocking foreign ownership of newspapers in the UKwhich is expected to become law in the coming weeks.
Zucker insisted that RedBird IMI was “thrilled to sell our option to Telegraph”, adding that there were “a lot of people interested” and “no reason to look back”.
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Asked if the experience would deter further investment in the UK, he said: “We are not put off. In fact, we’re eager to continue other conversations,” pointing to its recent deal with All3Media, the London-based TV and film production company behind Fleabag and Squid Game: The Challenge.
This is RedBird IMI’s fifth investment since it launched in December 2022 to build a global news, entertainment and sports media company. Zucker said he is optimistic about the future of the media industry and its investment potential.
“The consumption of entertainment, news and information is higher than ever, on more different platforms than ever before,” he said. “The onus is on us to figure out how best to monetize that, and I’m confident we’ll be able to figure it out.”
Those legacy brands that survive will have “owners who are willing to experiment and innovate, have capital and are patient,” he added.
Asked if media organizations understood the scale of the challenge, he said: “I really think there is a bit of naivety in understanding that the world is changing rapidly. Those who clutch their pearls do not realize that the world is changing. And those who don’t change usually get left behind.”
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