Controversy in UK over sale of The Telegraph to American group with links to China

(AFP) Several human rights NGOs on Wednesday alerted the U.K. culture minister to the "risk of Chinese influence" that comes with the purchase of the prestigious conservative daily The Telegraph by American fund RedBird.

"RedBird Capital's ties to China, including through its chairman, John L. Thornton, threaten media pluralism, transparency, and information integrity in the U.K.," wrote these organizations, which include Reporters Without Borders, Article 19 and Index on Censorship, in an open letter to Culture Minister Lisa Nandy.

"We urge you to prevent this acquisition and initiate a robust investigation into potential foreign influence," they add.

RedBird had announced in May a "principle agreement" to acquire The Telegraph for about $673 million.

Conservative government legislated to block an earlier deal

Owned by the wealthy Barclay family, the paper was put up for sale at the end of 2023 by bank Lloyds to pay off hefty debts.

A joint venture between RedBird and the Abu Dhabi media investment fund (IMI), called RedBird IMI, had reached an agreement with the Barclay family and saved it from debt in exchange for an option to take control of the group.

However, the possibility of an Emirati fund controlling an influential publication prompted the British Conservative government to legislate to block the takeover of media outlet by foreign states, which led RedBird IMI to eventually withdraw.

Eventually, the American fund proposed to become a solo majority shareholder.

RedBird Capital and its ties to China

The NGOs' concerns focus on the chairman of Red Bird Capital, who they claim "sits on the International Advisory Council of the China Investment Corporation, China's largest sovereign wealth fund, and chaired the Silk Road Finance Corporation, both vehicles through which China has pursued financial influence."

A spokesman for the American fund told AFP that "There is no Chinese involvement or influence in RedBird Capital's proposed acquisition of The Telegraph."

Also, Red Bird Capital said in May that it was in talks with U.K. minority investors "who are specialists in print media and committed to upholding the editorial values of The Telegraph."

RedBird, which has already invested in soccer clubs like Milan and Liverpool, says it wants to focus on The Telegraph's digital operations, subscriptions and "the best journalistic talent," and expand the publication internationally, especially into the United States.