On Message: Rothermere the new Alpha mail of UK media

Lord Rothermere has agreed to buy the Daily Telegraph. The Daily Mail proprietor is fulfilling a long-held ambition. At a stroke, a large swathe of Middle Britain falls under his purview.

The deal – albeit a long way from a done one, according to insiders - makes commercial sense following the withdrawal of US private equity firm Redbird Capital, affording economies of scale in merging two large publishing operations. He can take costs out of the back offices, printing and distribution. There may even be further savings to be had from already pared-back editorial departments. 

Thumbs up all round. Except Rothermere’s enlarged DMGT will control more than 50% of the UK national newspaper audience. That puts the deal firmly in the sights of Ofcom and the Competition and Markets Authority. 

This is where it gets weird. The plurality issue is based entirely on print sales, yet Rothermere is not buying the Telegraph for the paper product. Based on current rates of decline, the Telegraph will be selling a handful of copies in 10 years’ time. No, he wants it for digital. 

The strange bit – eccentrically British – is that when it comes to competition, the internet counts for little. Just as in retail, where the CMA pores over the offloading of bricks and mortar stores when what the purchaser is really after is online, the same applies to newspapers. The watchdog is several steps behind modern, commercial reality. 

Still, everybody has to pretend otherwise, so in his messaging, Rothermere is stressing his family’s long ownership of newspapers and his love of history. It’s all about the past, then, when his main motivation is the future.

Latest figures from Ofcom show that online is the main source of news for 71% of the UK population. The merged entity becomes a big beast in that market, but to give some idea globally it will account for just over 2 billion online audience minutes per month versus the BBC’s 9.1bn, TikTok’s 27bn and Alphabet and Meta’s 112bn each. Still, the authorities will focus on antediluvian print, on a disappearing age.

Expect some arranging of the newspaper deck chairs. Not so much editorially. Telegraph editor Chris Evans appears safe – Rothermere has given him his blessing. Cynics suggest Evans’ campaign against Redbird and its China links were driven at least in part by the prospect of his defenestration under their ownership. Now his paper may move more upmarket to pull away from the Mail – recently the pair have been edging closer. 

DMGT may also be required to sell i and Metro. Originally, when Rupert Murdoch was chasing the Spectator, also being sold as part of the Telegraph group, it was thought the two barons would come to an arrangement: Rothermere would sell i to Murdoch, which would get around the dominance problem. Whether the Murdoch empire, now run by Rupert’s son Lachlan, would still be interested in i is not clear. Similarly, it is uncertain who would take the Metro.

The Culture and Media Secretary, Lisa Nandy has said she is seeking a ‘timely sale’. She may refer to Ofcom and the CMA or wave it through – even though that would go against precedent. It would also upset the left of her party, who hate the Mail with a passion – but then, if not DMGT, then who?

Nandy can’t say what she personally thinks but the temptation for her and her boss, Sir Keir Starmer, might be to let it go, and see Labour for once earn some plaudits from the Mail.

Labour earning the Mail’s approval? Life is strange.