Paul Marshall, co-founder of Marshall Wace and investor in GB News, has acquired The
Spectator for £100 million. The deal transfers the 196-year-old magazine from the Barclay family
to Marshall’s media group, OQS. The acquisition comes at a time of significant consolidation in
the UK’s media landscape and represents a shift towards greater investment in the future of the
publication. Marshall has outlined plans to address what he termed “underinvestment” in The
Spectator, particularly focusing on digital innovation and expanding the magazine’s reach in the
Anglosphere, with a strong emphasis on North America.
Financially, the £100 million price tag underscores the Spectator’s profitability, with the implied
EBITDA multiple ranging between 14-15x. The Spectator has consistently returned a profit since
2013, making it an attractive investment. The deal closed following an unsuccessful coup from
an Abu Dhabi-backed bid amid concerns that state-backed entities should not own UK news
outlets.
What is The Spectator?
The Spectator is a UK-based weekly magazine covering a range topics including politics,
culture, and current affairs. Founded in 1828, it is one of the oldest continuously published
magazines in the world. Over the years, The Spectator has built a reputation for its sharp, often
conservative commentary, influencing British political discourse. They operate both in print and
digitally and recently launched its U.S. edition, expanding their global reach.
What are the Short-Term Effects of this Deal in the Industry?
In the short term, Paul Marshall’s acquisition of The Spectator will likely lead to increased investment in the firm’s digital operations. OQS plans to boost The Spectator’s offerings in video and audio content to enhance its appeal to a broader, younger audience. This could stimulate competition in the digital publishing space as other legacy publications may follow suit by enhancing their digital products to remain relevant.
In the UK, this acquisition follows a broader trend of consolidation within the media sector, such as the ongoing sales talks surrounding The Telegraph. The deal signals that legacy publications are pivoting towards more digitally-focused business models, with particular attention to international expansion. Marshall’s experience in digital innovation could prompt competitors to similarly increase investment in their digital infrastructure and international strategies.
What are the Long-Term Benefits?
In the long term, Marshall’s goal is to position The Spectator as a global media player, particularly focusing on growth in North America. By investing in the magazine’s digital platforms and increasing its international reach, the publication could gain significant market share in the U.S., where its 2019 U.S. edition has already shown promise. This expansion could also increase advertising revenues, as brands seek to engage with a global audience through The Spectator’s established and trusted platform.
Additionally, Marshall’s broader media portfolio, which includes UnHerd and Apollo, offers potential for cross-platform synergies. These outlets can collaborate to create multimedia content, shared events, or joint advertising campaigns, resulting in new revenue streams and greater brand exposure. The magazine’s reputation for thought-provoking political commentary gives it a unique market position, which can be leveraged to attract premium subscribers and corporate partnerships.
Are There Any Risks with the Deal?
Despite its potential, the acquisition comes with risks, particularly around maintaining editorial independence. Former chairman Andrew Neil voiced concerns about whether Marshall, as the new owner, will preserve The Spectator’s historically hands-off approach to editorial control, which has been key to its success. If the publication’s editorial integrity is perceived to be compromised, it could lose the trust of its loyal readership, which could affect both its reputation and its revenues. Another risk is the competitive nature of the media landscape, especially in North America.
While The Spectator has ambitions to grow in the U.S., it will face stiff competition from established media outlets such as The New York Times and The Wall Street Journal. The digital news market is already saturated, and gaining a foothold could be challenging, especially without sacrificing the quality or independence that has made the publication successful in the UK.
Lastly, while The Spectator has been consistently profitable, economic downturns and shifts in consumer behaviour could affect advertising revenues and digital subscriptions. Marshall will need to balance growth with managing these potential financial risks, particularly given the
competitive, fast-evolving nature of the global media sector. As The Spectator enters this new chapter, its success will depend on Marshall’s ability to balance growth with preserving the values that have made it a respected publication for nearly two centuries.
