https://arab.news/wpa6x
- Rani Raad says failure of bid, blocked by UK legislation banning foreign governments from owning national newspapers, would weaken the publication’s brand
- His Abu-Dhabi-backed investment group is now focusing on selling the titles at a premium and looking at other opportunities
DUBAI: Rani Raad, the CEO of RedBird International Media Investments, described the collapse of the Abu Dhabi-backed company’s takeover bid for British newspaper The Telegraph as “a shame” and said it will ultimately weaken the publication’s brand.
In first public remarks since the deal floundered in April, he told Al Arabiya’s Hadley Gamble, during a conversation at the Arab Media Forum in Dubai on Tuesday, that RedBird had effectively taken charge of The Daily Telegraph, the Sunday Telegraph and The Spectator magazine in December after repaying a $753 million debt owed by owners the Barclay family to Lloyds Bank.
However, finalization of the deal collapsed as a result of UK legislation prohibiting foreign governments from owning British national newspapers.
“In an ideal world I would be sitting in front of you all saying, ‘We own The Telegraph,’” Raad said. “Not only would that be good for us and our portfolio but also good for the people working in paper.
“My fear is what happened in The Telegraph ultimately is something that would cost the paper and its employees more, and the UK government more, than any of us over here.”
Raad said that while it was not his place to comment on UK politics, policymakers had changed the rules when the deal was almost complete, with negative effects on the promotion of inward investments.
“Last year alone, the UK lost 1,200 journalists,” Raad said. “For whatever reason, whether xenophobia or party politics, it was a shame the way it played out.”
He added that the group is now focusing on the sale of The Telegraph and The Spectator for a premium, and he remains optimistic about a successful outcome.
“We will make our money back, and then some, and move on to other markets and focus on other opportunities,” Raad said. “Our only regret, in hindsight, is the timing could have been better crafted.”
He also shared his views on the decline of CNN, and the wider American network television industry, which recently hit a 30-year low in primetime ratings. He spent 25 years at CNN International Commercial, including serving as its president, and believes the news brand should not be counted out just yet.
“RedBird IMI was established in partnership with former CNN CEO Jeff Zucker, alongside partners in Abu Dhabi and Gerry Cardinale in New York. We wanted to focus on news and a new transition,” Raad said.
“What they (CNN) are dealing with is just a situation whereby the sector is going through drastic transformation. They are learning how to serve a new audience and demographic. There is potential for reinvention and growth.
“CNN is a very, very powerful news brand globally. Ultimately, if they find a way to make that transition, to talk to a broader demographic, it’ll be here for a long, long time.”