Rupert Murdoch may have officially stood aside as chair of his media businesses but he’s still eyeing up what could be his last major UK deal: the purchase of the Spectator magazine.
The rightwing magazine, which is due to be auctioned off next month, is said to be a favourite of the billionaire, who used his resignation statement to claim much of the media is “in cahoots” with elites who have “open contempt for those who are not members of their rarefied class”.
He said: “In my new role, I can guarantee you that I will be involved every day in the contest of ideas.”
Although the Spectator has a relatively small audience, its influence on the right wing of politics and ideological position means it is a prize bauble for a rich individual – and one that could have substantial influence on the future of the Conservative party.
It is all part of a game of interlinked deal-making among rightwing media power-brokers, after Lloyds Banking Group seized the Telegraph and the Spectator from the Barclay family.
With the titles set to be sold in October, various individuals and media companies are trying to work out whether they can afford to buy the Telegraph or the Spectator, and whether regulators and the government will allow them to do so.
One person with knowledge of the discussions about the Spectator said: “People still think Murdoch is the frontrunner and can outbid everyone else. He’s got so much cash, it’s a trophy prize he’s always wanted. You can see it like the end of his career.”
If Murdoch bought the Spectator it would almost certainly spell the end for its chair, Andrew Neil, given the historic falling out between the two men.
There has been speculation that Neil could be involved in putting together a rival bid to keep control of the Spectator, although sources close to Neil denied any such arrangement was in place.
Internally at the Spectator there is already speculation over who could become editor if Fraser Nelson, who has run the outlet since 2009, steps down.
One of the issues a new owner would have to confront is where to base the publication. At the moment the Spectator is based in a Georgian townhouse in Westminster but that is owned separately through a confusing series of offshore accounts.
Murdoch’s ownership of the Times means he would struggle to get the purchase of the Telegraph approved by the government but there are few barriers to stop his purchase of the Spectator.
Bloomberg News has previously claimed that Murdoch offered the Barclays £50m for the title two years ago but a public auction would be likely to push the price up even higher.
Although the Spectator’s finances are healthy this would be well above an expected valuation based solely on its declared results. In 2021 the company increased its annual revenue to more than £20m, while pre-tax profits hit £2.9m.
Other potential bidders include Paul Marshall, the hedge fund manager whose political journey has taken him from Lib Dem funder to Brexit backer and now rightwing media mogul.
He already funds GB News and the influential Unherd website but is seen as more likely to prioritise a bid for the Telegraph over the Spectator. This would give him immense influence over the Conservative party on three different media fronts during the Tory leadership contest that is expected after the next general election.
Other interested parties in the Telegraph auction process include Daily Mail publisher DMGT, which would unify a large chunk of the rightwing newspaper market.
But it could be forced to offload the i or Metro in order to gain approval for the deal. Former Telegraph editor Will Lewis also insists he has the funds ready for a bid, while denying the money is coming from Saudi Arabian sources.
The Spectator has even published speculation about its future ownership from Andy Coulson, who rose under Murdoch to become editor of the News of the World, only to be sent to prison for his role in the phone hacking scandal.
He praised his former boss, saying: “And when it comes to the leaving do (with the obligatory mocked-up Sun front page I hope) the answer to ‘what do we buy him?’ is obvious. With all due respect to the current publishers of this piece, it has to be: the Spectator.”
As for staff at News UK, the consensus is that Rupert Murdoch remains largely in charge – for now.
Instead, the biggest concern is his threat to work-from-home culture when the 92-year-old “chairman emeritus” declared he expected to still see staff in the office late on Friday afternoons.
