Jeff Zucker's RedBird IMI to withdraw Telegraph bid
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RedBird IMI plans to formally withdraw its bid for the U.K.'s Telegraph and Spectator, Axios has confirmed.
Why it matters: The bid for the influential British publications has been circling the drain amid the country's push to change its laws regarding foreign state ownership of newspapers.
Zoom in: RedBird IMI could withdrawal as early as next week, per a source with knowledge of the situation, who wasn't authorized to speak publicly. A rep for RedBird IMI declined to comment.
- The British government is set to formalize new legislation via royal ascent that will amend the U.K.'s Digital Markets, Competition and Consumers Bill to ban majority foreign ownership of its newspapers and magazines.
- News of RedBird IMI's bid withdrawal was first reported by the Financial Times on Friday.
Catch up quick: RedBird IMI provided a package of loans to the Barclay family that owns the publications, including a £600 million loan against the Telegraph and Spectator, which it would have converted into equity if the deal went through.
- The bid faced quick pushback from conservative lawmakers over concerns regarding foreign ownership by Middle Eastern backers.
- RedBird IMI is a joint venture between investment firm RedBird Capital and International Media Investments, an Abu Dhabi-based investment company. Jeff Zucker is its CEO.
- The Telegraph is hugely influential in conservative circles, and that party — colloquially known as the Tories — has majority control of the government.
What's next: An auction process will restart for both publications once RedBird IMI officially withdraws, the FT reported.
