A new wave of discontent is brewing in British politics over the UAE fund RedBird IMI, which, after a failed attempt to buy The Telegraph, is continuing to operate in the British market without completing its obligations to sell the publication, The Telegraph has reported. The deal, which was supposed to symbolize Abu Dhabi capital’s influential breakthrough into the English-language media heritage, has turned into a protracted political scandal that now threatens the fund’s reputation in the West.
Despite a promise made almost a year ago, RedBird IMI has still not been able to sell a controlling stake in the Telegraph after the British government blocked their bid under legislation that prohibits foreign states from owning key media outlets. Although the auction ended in the fall, the lack of a buyer willing to pay the asking price has led to the collapse of the deal, which British media have already dubbed “the auction from hell.” Meanwhile, amid this uncertainty, RedBird IMI is negotiating new assets, including a takeover of part of ITV Studios, the media arm of ITV, which only exacerbates the situation.
The conflict over the sale of The Telegraph
RedBird IMI’s current actions are causing a sharp reaction from leading British politicians. Former Conservative leader Sir Iain Duncan Smith is demanding that the government intervene without delay: “Whatever the question, the answer is not RedBird,” he said, indicating that the fund is not allowed to make new purchases until the sale of The Telegraph is completed. Liberal Democrat leader Sir Ed Davey spoke in a similar vein, calling the fund’s parallel negotiations a “challenge on confidence” in its intentions: “Shouldn’t we first resolve one issue before we tackle another?”
Criticism also came from Lisa Nandy, the culture minister who is currently overseeing the asset freeze following the legislative action against RedBird IMI. Baroness Stowell, chair of the Lords’ select committee on communications, called for a tough deadline before Easter, saying the current status quo “goes against the spirit of the legislation”. But the UK’s Culture Office has so far refrained from direct intervention, allowing the situation to drift.
All3Media and the impact of the streaming economy in focus
Despite the unresolved issue with The Telegraph, RedBird IMI is continuing its aggressive acquisition strategy. Last year, the fund already bought All3Media, the TV production giant, for £1.2bn, and is now actively discussing a possible merger with ITV Studios. While such a combination makes obvious business sense in the era of streaming, the political fallout from the Telegraph case has cast a shadow over any further expansion attempts.
In October, RedBird IMI was in exclusive talks to sell The Telegraph to a consortium led by David Efune, but a lack of funding has scuttled the deal. While investor interest remains, the outlook remains uncertain. Meanwhile, ITV chief executive Carolyn McCall continues to seek ways to monetise the TV arm, including talks with CVC, an investor with experience in Six Nations Rugby.
Financially, ITV Studios looks an increasingly attractive asset: the unit recorded sales of £2.2bn last year, exceeding ITV’s total revenues. But the political tensions surrounding RedBird IMI risk making any merger impossible, even if the economic logic makes sense. Britain now faces a crucial choice: whether to allow foreign state capital to dictate the agenda in its national media — or to draw a clear line between business interests and strategic informational independence. And until the answer is given, the future of The Telegraph remains in limbo.