UK to Allow Foreign States Limited Stake in UK Newspapers
The UK government is set to allow foreign state-backed investors to own up to 15% of British newspapers and magazines, removing a previous ban on the practice that followed backlash over Abu Dhabi’s attempted Telegraph takeover. Culture Secretary Lisa Nandy said the new rules strike a balance between protecting media independence and helping publishers secure needed investment. “We are fully upholding the need to safeguard our news media from foreign state control whilst recognising that news organisations must be able to raise vital funding,” she said.
The new rules apply to sovereign wealth funds, state pension funds, and similar entities, but stop short of allowing any one foreign power control or influence. The threshold was chosen as “the most effective, simple and proportionate approach” after industry concerns that a full ban could restrict financing and hinder deals. The government also plans to expand its ability to scrutinise takeovers beyond traditional media to include online news outlets and digital publications.
The move comes after RedBird IMI, a joint venture funded mostly by Abu Dhabi’s Sheikh Mansour, had its £600m bid for the Telegraph blocked last year over fears of foreign influence. Although the Spectator magazine has since been sold, the Telegraph remains in limbo. RedBird, now reportedly working on a new deal without giving IMI controlling power, is still exploring options. The government hopes this updated approach will avoid repeating diplomatic tensions while keeping protections in place.
