The GB News shareholder is now the frontrunner to buy one of Britain’s most influential political magazines amid an ongoing auction of the Telegraph newspapers.
Sir Paul Marshall, the hedge fund tycoon and GB News shareholder, is closing in on a deal to buy The Spectator, one of Britain’s most influential political media titles.
According to the information that we have obtained, Sir Paul, who is also the co-founder of Marshall Wace, has emerged as the main contender to purchase The Spectator. This event is a part of an auction process that also includes the Daily Telegraph and the Sunday Telegraph publications.
Sources close to the process said the City financier’s Old Queen Street Ventures vehicle could strike a deal to buy the magazine as soon as this month.
A transaction for The Spectator, which was first published in 1828, would decouple it from a simultaneous process which is taking place to find new owners for the right-leaning Telegraph newspapers.
Insiders said a purchase by Sir Paul of The Spectator would not necessarily rule him out of the Telegraph sale, although there has been growing doubt in recent weeks about whether he would participate in the newspaper auction.
Due to the collapse of a contract that would have allowed RedBird IMI, a vehicle that is supported by funds from the state of Abu Dhabi, to gain ownership of the media assets, the future of these assets has been called into question.
The takeover collapsed after the government intervened to block ownership of national newspapers by funds emanating from overseas governments.
A number of other bidders, including Rupert Murdoch, the owner of The Times and The Sun, had also expressed interest in buying The Spectator ahead of a deadline set by RedBird IMI’s advisers last month.
One person close to the process cautioned that a deal between Sir Paul and RedBird IMI for The Spectator had yet to be signed and could yet fall apart.
He is not thought to be in formal exclusivity to buy the title.
In the event of a transaction, the magazine, which generates a profit of seven figures on an annual basis, would most likely be valued at anywhere between fifty million and one hundred million pounds. The publication, which is edited by Fraser Nelson, is closely read by politicians in Westminster, and its annual summer party is typically attended by the most senior officials in both the government and the opposition in the United Kingdom respectively. Andrew Neil, a veteran broadcaster and journalist, is the person in charge of the committee. Earlier this year, he was quoted as saying, “The issue of a foreign government owning media assets is a matter of public policy.” “With regard to Marshall, it is just a matter of the fact that we do not accept him and we do not desire him. This is a matter of individual preference. Ever since the respective parent companies of the Telegraph and Spectator were thrown into insolvency proceedings by Lloyds Banking Group more than a year ago, Sir Paul has been linked with the titles of both of these publications. Sir Paul, who was a significant shareholder in the parent business of GB News, resigned from his position on the board of directors earlier this year. Earlier this month, a source close to him stated that he had just changed the name of UnHerd Ventures to Old Queen Street Ventures. The reason for this change was “to allow the vehicle to bid for multiple media titles without creating the impression that they will be published by UnHerd.”
The acquisition of a call option that was intended to convert into ownership of the Telegraph and Spectator was accomplished by RedBird IMI with the payment of £600 million. Concerns have been raised by many involved in the process on whether or not the Abu Dhabi-backed vehicle will be able to return that amount through the subsequent sale of the assets. It is also stated that a number of groups are still in competition with one another to purchase the publications. These individuals include the former advertising mogul Lord Saatchi, the regional newspaper group National World, which is listed on the London Stock Exchange, and Mediahuis, which is a media firm based in Belgium. In a report that was published by Sky News a month ago, it was disclosed that Nadhim Zahawi, the former chancellor, was in the process of getting rich investors to acquire the Telegraph. The proximity of Mr. Zahawi to the former proprietors of the Telegraph was highlighted in May when Sky News announced that he would be joining Very Group, the family’s online retailer and financial services provider, as its chairman. Mr. Zahawi played a pivotal role in the previous year as an intermediary between the Barclay family and RedBird IMI. In the event that RedBird IMI had been granted permission to convert its call option into ownership of the titles, it was speculated that he would become the helm of the newspaper company. This declaration was made three months after IMI had participated, together with the private equity company Carlyle, in a financial support package for Very Group that was worth 125 million pounds. There is a widespread belief that the Barclay family is not directly involved in the conversations that Mr. Zahawi is having with IMI over the Telegraph. It was recently disclosed by The Times that the publisher of the Daily Mail had terminated their participation in the auction due to the possibility of a comprehensive investigation into the competition. According to reports, Sir Paul had obtained finance from Ken Griffin, the American founder of the hedge fund Citadel, for a bid on the Telegraph. However, it was not clear whether Mr. Griffin would be involved in financing a purchase of The Spectator.
In the beginning of this year, a new channel disclosed that Raine Group, which is most well-known in the United Kingdom for its roles in recent transactions involving the football clubs Manchester United and Chelsea, as well as Robey Warshaw, had been retained to provide advice on the subsequent phase of the ownership of the Telegraph.In the beginning of this year, Sky News disclosed that Raine Group, which is most well-known in the United Kingdom for its roles in recent transactions involving the football clubs Manchester United and Chelsea, as well as Robey Warshaw, had been retained to provide advice on the subsequent phase of the ownership of the Telegraph.
One person close to the Telegraph said its commercial prospects were robust, as had been made evident by its recently published accounts.
RedBird IMI and a spokesman for Sir Paul both declined to comment.