UK Sets 15% Foreign State Stake Limit in Newspapers Amid Telegraph Sale

The UK government is set to allow foreign states to own up to 15% stakes in British newspapers, a move aimed at resolving a two-year stalemate over the ownership of the Telegraph titles. This new threshold, announced by Culture Secretary Lisa Nandy, follows intense lobbying from major newspaper groups like News UK and DMGT, which argued that a lower cap would limit vital investment opportunities for the struggling print industry. The change enables the Abu Dhabi-backed RedBird IMI consortium, which currently holds an option to take full ownership of the Telegraph but was previously blocked by a law banning foreign state ownership, to retain a significant stake. RedBird Capital, the US private equity partner in the consortium, is preparing to become the controlling owner, while other potential buyers have struggled to raise sufficient funds. The government plans to introduce the cap through a statutory instrument, marking a shift from the previous Conservative government's proposed lower limits. This decision is expected to facilitate the sale process and provide more clarity on foreign investment in politically influential UK media outlets.