In a strategic move, Jonathan Harold Esmond Vere Harmsworth’s Daily Mail and General Trust (DMGT) has reportedly shifted gears, stepping away from plans to involve Qatari investors in the acquisition of the Telegraph Media Group. This decision comes amidst speculations that the United Kingdom government may resist investors from the Middle East, particularly those eyeing ownership of a politically significant newspaper.
The Financial Times reported that DMGT, instead of pursuing Qatari investment, is formulating an independent financing strategy for its bid to take over the conservative national newspaper. The move is seen as a response to potential challenges faced by bidders backed by Middle Eastern funds in gaining UK government approval.
Media expert Claire Enders highlighted the uphill battle faced by such investors, emphasizing the difficulty in getting the UK government comfortable with the idea of foreign ownership of a politically important newspaper. The concerns echo wider sentiments about safeguarding the editorial independence of the Telegraph.
The sale of the Telegraph and the Spectator magazine was initiated by British bank Lloyds after assuming control from the Barclay family earlier this summer. Confidentiality agreements have been signed by potential investors, anticipating the release of information packs.
Lord Rothermere’s consortium, among other contenders, is gearing up for the first round of bidding later this month. DMGT, keen on maintaining the Telegraph’s editorial autonomy, is contemplating housing it in a separate entity to allay concerns about consolidating ownership of two right-leaning newspapers.
The Telegraph, comprising The Daily Telegraph, Sunday Telegraph, Telegraph.co.uk, The Telegraph Magazine, and the Telegraph app, is currently the sixth most popular news website in the UK. Lord Rothermere’s group, which confirmed talks with Middle Eastern investors in September, is determined to shoulder the majority of the economic risk to retain control crucial for safeguarding the newspaper’s editorial independence.
DMGT has expressed ambitions to leverage the Telegraph’s potential abroad, particularly in the United States, mirroring its success with the Daily Mail. Concerns are growing as inquiries from Saudi and other Middle Eastern wealth funds, including a recent £1 billion offer backed by a member of the Emirati royal family and the First Abu Dhabi Bank, have surfaced.
Speculations surround potential Abu Dhabi-backed bids facing government scrutiny through a public interest intervention notice. The Barclay family, aiming to regain control, has emphasized that their proposals focus on resolving outstanding loans, countering the perceived need for intervention.
The Telegraph bidding war is attracting various contenders, including hedge fund head Sir Paul Marshall, Rupert Murdoch’s News UK, Czech billionaire Daniel Křetínský, and Axel Springer. However, former Washington Post leader Sir William Lewis, once linked to a potential bid, is now less likely to pursue the Telegraph.
As the bidding process unfolds, the intertwined dynamics of media ownership, international investment, and political considerations will continue to shape the fate of the Telegraph, a cornerstone in the British media landscape.
(Source: Fatemeh Salari | Doha News)
