UK government may intervene in Saudi investment into London papers
The UK government says it is likely going to intervene in the stake sale of the two companies that control the British newspapers, The Evening Standard and The Independent.
Lebedev Holdings and Independent Digital News and Media — the parent companies of The Evening Standard and The Independent, respectively — received a letter on Thursday from Digital, Culture, Media and Sport Secretary Jeremy Wright that addressed concerns about an investor with ties to Saudi Arabia.
Wright said he’s concerned there may be a “public interest consideration” because of laws that call for the accurate presentation of news and free expression of opinion.
The Financial Times reported in February that a Saudi investor named Sultan Mohamed Abuljadayel had purchased 30% of Lebedev Holdings, which is majority owned by Russian media mogul Evgeny Lebedev.
Abuljadayel reportedly also purchased a 30% stake of the Independent, another paper that Lebedev controls, in 2017. That led to questions over media ownership and transparency in the United Kingdom. Critics wondered why a Saudi investor would be interested in British newspapers, and some speculated the Kingdom may be purchasing media stakes as a soft power move.
Speaking to CNN in March, The Evening Standard’s editor George Osborne said no investor would influence the editorial independence of the paper, which he said is “protected in the contract.”
Wright said the companies have until June 17 to respond. After that, Wright said he will make a final decision on whether to issue an intervention notice the following week.
If the secretary does issue an intervention notice, the UK media regulator OfCom, will assess and report on the public interest concerns, while the Competitions and Markets Authority will assess what the investment means for competition.
