Calls to block the Telegraph’s acquisition over its buyer’s alleged Chinese links have been sent to the UK Government, alongside demands for an investigation into the owner.
US-based private investment firm Redbird Capital Partners bought the Telegraph in May this year for £500m, with Abu Dhabi-backed International Media Investments to keep a minority stake of up to 15%.
The deal ended nearly two years in ownership limbo for the UK’s biggest selling broadsheet/quality newspaper.
The UK Government took action to stop state-backed investment vehicles taking ownership of UK newspapers.
Human rights NGO Article 19 – along with Reporters Without Borders, Index on Censorship – wrote to the UK Government on Wednesday calling for the acquisition to be blocked and investigated, with concerns of “public interest and potential foreign media influence”.
The letter, addressed to Culture Secretary Lisa Nandy, has encouraged the government to submit intervention notices to the Competition and Markets Authority (CMA) and Ofcom.
It alleged Redbird’s Hong Kong office is subject to legal and political pressure from Beijing, that chairman John L Thornton has relationships with Chinese state-linked entities including the Silk Road Finance Corporation, and of Chinese involvement in English-language media.
“We share and support serious concerns raised by members of Parliament…and media freedom experts regarding the risk of Chinese influence through Redbird Capital,” the letter said.
“Redbird Capital’s ties to China, including through its chairman, John L Thornton, threaten media pluralism, transparency, and information integrity in the UK.”
In the letter, Thornton was accused of previously telling “senior Chinese officials” to “insert themselves into English-language media” to “shape international narratives”, with this guidance demanding “greater transparency and robust investigation”.
Of the merger, Redbird has previously said it plans to work with The Telegraph’s current management team – including editor Chris Evans and chief executive Anna Jones – to grow the brand internationally, especially in the US.
It also said they would develop new content verticals in areas like travel and events to maximise the commercial opportunities from their affluent subscriber base.
Redbird response
A spokesperson for Redbird told Press Gazette: “There is no Chinese involvement or influence in Redbird Capital’s proposed acquisition of the Telegraph.
“Redbird has been clear on its position regarding press independence which is a fundamental tenet of its investment thesis in owning and growing news businesses – whether it’s CBS News in the US or The Telegraph in the UK.
“After two years of regulatory limbo, it is now time to close this acquisition and finally position The Telegraph for growth. The partnership with Redbird will enable The Telegraph’s world class group of editors and reporters to thrive in this transformative moment for news organisations globally.”
At a conference on Thursday, Redbird founder and managing partner Gerry Cardinale spoke on influencing a brand through media acquisitions.
Having recently invested $1.8 billion into Skydance Media’s recent merger with Paramount, Cardinale told reporters: “There’s no way we’re going to try to influence the news, because if you do that, you kill the investment basis. It’s that simple.”
He then compared the situation to Redbird’s acquisition of Telegraph Media Group.
“Here’s the deal for a guy like me,” he said. “Don’t buy into a news organisation, whether it’s broadcast or print, if you want to influence it, because that’s just bad business, right, because the kernel of the entire investment thesis is independence and objectivity. If you can’t get your head around that, don’t buy it.”
Previous attempt to block Redbird acquisition
The letter also points to previous Culture Secretary Lucy Frazer’s decision to intervene in Redbird’s planned acquisition of the Telegraph in November 2023, with her issuing a public interest intervention notice at the time.
“My role as the Secretary of State in this process is quasi-judicial and procedures are in place to ensure that I act independently and follow a process which is scrupulously fair, transparent and impartial,” Frazer said at the time.
The recent letter concluded: “We further encourage your office to ensure CMA and Ofcom investigations guarantee independent consultation with experts in Chinese foreign information manipulation and influence operations…pending robust investigations, the planned merger should be placed on hold.”
The list of signatories include: Article 19, Civicus, Committee for Freedom in Hong Kong (CFHK) Foundation, Hong Kong Democracy Council (HKDC), Hong Kong Watch, Human Rights in China (HRIC), Index on Censorship, International Tibet Network, Reporters Without Borders (RSF) and Safeguard Defenders.
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