Abu Dhabi Fund RedBird IMI Faces Fresh Scrutiny Over ITV Studios Bid

Political tension is mounting as RedBird IMI, the AbuDhabi-backed venture currently embroiled in The Telegraph ownership controversy, sets its sights on ITV’s production division. The move has sparked significant concern among British MPs, particularly as the fund continues to struggle with its unresolved Telegraph situation.

The investment group, which receives substantial funding from Sheikh Mansour bin Zayed al-Nahyan’s personal wealth, was previously blocked from acquiring The Telegraph through debt conversion due to political intervention. The UK government’s introduction of legislation prohibiting foreign state ownership of newspapers effectively halted their attempted takeover.

Recent developments indicate RedBird IMI is now exploring a potential merger between ITV studios and All3Media, a television production company it acquired for £1.2 billion. This strategic manoeuvre has drawn sharp criticism from prominent political figures, including Sir Iain Duncan Smith, who emphasised the need for government intervention to force a Telegraph sale based on highest bidder principles.

The Liberal Democrats’ leader, Sir Ed Davey, expressed concerns about RedBird IMI’s expansion plans whilst The Telegraph situation remains unresolved. The fund’s current position involves controlling Telegraph-related debt and attempting to sell an equity conversion option, with an ambitious target of recouping their £600 million investment.

Despite mounting pressure from politicians urging government intervention regarding The Telegraph’s effective control by UAE interests, officials maintain that the resolution lies with RedBird IMI. The situation highlights growing tensions surrounding foreign state-linked ownership of British media assets.

The development raises crucial questions about media ownership concentration and foreign investment in British broadcasting assets, particularly as ITV faces increasing pressure in a rapidly evolving media landscape.