The Abu Dhabi backed takeover had caused controversy over the potential for foreign owners to take control of key UK media assets, resulting in fresh legislation being drawn up to stop foreign states from owning UK newspaper and news magazines.

Although RedBird IMI had pledged to protect the editorial process at the Telegraph and Spectator, it said the definition of a foreign power in the new legislation meant it would not be possible to proceed.

The two titles were put up for sale in June 2023 in dramatic circumstances, after Lloyds Banking Group took control of parent company B.UK Ltd following a long-running dispute with the Barclay family over unpaid loans.

Attention will now turn to a raft of potential future owners somewhat closer to home, if the previous auction process is now dusted off.

Interested parties or potentially interested parties had included: Daily Mail owner DMGT, Rupert Murdoch’s News UK, GB News owner Sir Paul Marshall, acquisitive media group National World, German publisher Axel Springer, and Czech billionaire (and possible future Royal Mail owner) Daniel Křetínský.

RedBird IMI holds £600m of debt that was previously owed by an indirect holding company of the Telegraph and the Spectator to Lloyds Bank/Bank of Scotland, and it owns an option to acquire the shares in the companies holding the Telegraph and the Spectator. 

RedBird IMI is backed by Manchester City owner Sheikh Mansour bin Zayed al-Nahyan.

Regarding plans for the new sale process, RedBird IMI stated: “We will carry out the transaction as smoothly and efficiently as possible, working in close coordination with bidders to ensure the process delivers the best possible outcome for the Telegraph and the Spectator and their employees and readers.”