Lisa Nandy refers Telegraph sale to watchdogs over rightwing media plurality concerns

Lisa Nandy, the culture secretary, has referred the Telegraph’s proposed sale to the publisher of the Daily Mail to the competition and media watchdogs, weeks after she raised concerns about the consolidation of rightwing newspapers.

Nandy said she was using her powers to refer the £500m deal for the Telegraph titles, which include the Daily Telegraph and its Sunday sister paper, to the Competition and Markets Authority (CMA) and the media regulator Ofcom.

She revealed she was minded to make the move last month, with officials saying Nandy had concerns that “there is potential for loss in the plurality of voices, especially in the UK’s right-leaning market”.

It marks the latest obstacle to be thrown in the path of what has become a three-year saga in the Telegraph’s sale, during which deals have been first agreed and then either fallen apart or been blocked.

In a written statement, Nandy confirmed that she had “concerns” about the public interest of allowing the Telegraph titles to be bought by the Daily Mail and General Trust (DMGT), which is privately owned by Lord Rothermere.

“These warrant further investigation,” Nandy said. “The public interest considerations concerned are the need for a sufficient plurality of views in each UK market for news media; and, the need for a sufficient plurality of persons with control of media enterprises serving every different UK audience.”

Lisa Nandy said there was a need for ‘sufficient plurality of persons with control of media enterprises serving every different UK audience’. Photograph: Alicia Canter/The Guardian

The CMA will report to Nandy on the competition issues raised by the deal. Ofcom is to report on the “media public interest considerations”. They have been given until the middle of June to report back, ending any hopes of a speedy deal.

In January, officials said Nandy had concerns that the Mail’s stable of publications meant it already had “a substantial share” of the UK newspaper market. It also owns the i paper, Metro and the New Scientist magazine.

The official said the deal would give DMGT control of 46.68% of “the right-leaning national daily print newspaper market”. Officials also said that while the Daily Mail and the Telegraph had “overlapping” editorial positions, they targeted “different audiences within the right-leaning spectrum”.

After that letter, DMGT told Nandy the media landscape has changed drastically in recent years with the arrival of digital platforms and outlets, meaning the traditional print newspaper market can no longer be seen in isolation.

It also questioned the value of labelling media titles as “rightwing”, given the vagueness of the term.

In a letter to DMGT yesterday, a government official said print editions remain a “flagship product for many news organisations”. They said Nandy continued to have concerns about a “reduction in plurality of views and plurality of persons with control”.

The £500m price tag of the deal has been widely regarded as expensive, though sources insisted Rothermere had raised the cash.

A spokesperson for DMGT said: “The news media industry is changing rapidly, and publishers must compete with an array of online sources. Against this backdrop, trusted news organisations will play an ever more critical role, and that requires publishers with the resources and experience to compete.

“We remain committed to investing in The Telegraph and its journalists, preserving its distinctive editorial voice and team, and accelerating its global expansion, with a focus on the US.

“We look forward to working constructively with regulators and the government to secure a timely completion of the transaction, which will provide stability and certainty to The Telegraph after a protracted period of uncertainty.”

The reviews mean the Telegraph titles will continue in purgatory over their ownership. The titles were put up for sale in 2023 after the Barclay brothers lost control of them.

A sale was initially agreed to an Abu Dhabi-backed consortium, RedBird IMI, but this was blocked by the previous Conservative government over concerns about foreign state ownership.

A deal was then agreed with US firm RedBird Capital, with Abu Dhabi allowed to take a minor stake after the Labour government tweaked the law. However, that fell through after delays and an internal rebellion.

A deal was then struck with DMGT in November.