UK to allow foreign states to own 15% stake in British newspapers

The UK authorities plans to let overseas states to ain up to a 15% liking successful British newspapers and magazines nether caller media reforms.

The projected change, which was announced connected Thursday, comes a twelvemonth aft nan erstwhile Conservative authorities banned overseas newspaper aliases mag ownership amid concerns complete an Abu Dhabi-led takeover of nan Telegraph, 1 of Britain’s best-known papers.

The Labour government, which came to powerfulness aft a landslide predetermination triumph successful July, argues that a 15% headdress connected state-owned investors will thief UK news organisations to activity finance while limiting nan consequence of overseas authorities influence.

As portion of nan reforms, nan rules connected media mergers will beryllium expanded to see online news publications and magazines. Currently, they only use to television, power and people newspapers.

“Britain’s free and independent property is simply a nationalist plus for illustration nary different and it is correct that we person beardown measures successful spot to let scrutiny of UK takeovers that mightiness spell against nan nationalist interest,” Culture Secretary Lisa Nandy said.

“We are afloat upholding nan request to safeguard our news media from overseas authorities power whilst recognising that news organisations must beryllium capable to raise captious funding,” she added.

The changes, which tin only beryllium enacted aft votes successful nan House of Commons and nan House of Lords, could extremity 2 years of uncertainty astatine nan Telegraph and nan Sunday Telegraph.

A associated task betwixt US patient RedBird Capital and nan IMI, which is backed by nan Abu Dhabi royal family, efficaciously took power of some papers and nan Spectator mag successful 2023 aft partially repaying nan debts of nan titles’ erstwhile owners, nan Barclay family.

However, nan past Conservative authorities blocked RedBird IMI’s ownership by introducing nan Digital Markets, Competition and Consumers Act 2024, which prevents overseas states aliases associated individuals from acquiring British newspapers.

The UK government’s caller 15% headdress connected overseas ownership could licence nan Telegraph waste to spell ahead.