Under changes announced by UK Culture Secretary Lisa Nandy, State Owned Investors (SOIs) including sovereign wealth funds, public pension or social security schemes may now take minority stakes of up to 15% in UK newspapers and news magazines. The policy shift follows a consultation triggered by last year’s Digital Markets, Competition and Consumers Act 2024, which had barred any foreign-state ownership after concerns over an Abu Dhabi-backed bid for the Telegraph and the Spectator.
Nandy explained that the 15% cap offers “the most effective, simple and proportionate approach” to guard against undue influence while enabling struggling publishers to secure essential financing. Many media groups, she noted, found the previous outright prohibition too restrictive when seeking new investment.
The ban was originally imposed in mid-2023 after Lloyds Bank seized the Telegraph titles from the Barclay family and the UAE’s RedBird IMI, supported by Sheikh Mansour bin Zayed Al Nahyan, made its takeover proposal. Parliamentarians had feared that full foreign-state control could undermine the independence of Britain’s free press.
Last year’s sale of the Spectator to British billionaire Sir Paul Marshall who installed Lord Michael Gove as editor illustrated the lengths to which publishers went to keep titles under domestic ownership. Under the new rules, however, SOIs can now inject capital without exceeding a 15% threshold of equity or voting power.
“This balanced framework upholds the integrity of our national media while recognising publishers’ need for investment,” Nandy said. She added that robust review mechanisms will remain in place to scrutinise any acquisition that might threaten the public interest.
Publishers are expected to welcome the change as they navigate rising production costs and declining advertising revenue. With a modest minority stake, state-backed funds can support innovation and digital transformation without compromising editorial independence.
