GB News owner pumps in further £41mn in funding as losses widen

GB News owner All Perspectives, the group backed by hedge fund tycoon Paul Marshall, has been forced to provide a further £41mn in funding to cover operating costs at the lossmaking broadcaster.

GB News revealed a pre-tax loss of £42.4mn in its 2022/23 accounts published at Companies House on Tuesday, a sharp increase in losses from £30.8mn the year before.

The right-leaning broadcaster launched in 2021 with backing from Marshall, who owns more than a third of All Perspectives, alongside Legatum, a Dubai-headquartered investment firm, which also owns a large stake. All Perspectives is now owed £83.8mn by GB News after the group agreed to provide a further £41mn during the course of the year, according to the accounts.

Existing investors in GB News are expected to have to inject further funds into the broadcaster this year to cover its losses, according to a person close to the situation.

Other directors of All Perspectives include City executive Baroness Helena Morrissey and George Farmer, the son of ex-Conservative party treasurer Lord Farmer and a former chief executive of Parler, the conservative social media site, which has now closed.

Marshall and GB News did not respond to requests for comment.

The higher losses appear to relate to the costs of growing the broadcaster, which wants to be the largest news channel in the UK by 2028. The number of staff increased to 295 in May 2023, from 175 in May 2022. The group also pays high wages to several current and former Conservative politicians, such as Sir Jacob Rees-Mogg. 

The Financial Times revealed last year that Rees-Mogg was among the presenters and contributors — alongside ex-UK Independence party leader Nigel Farage and Arlene Foster, former first minister of Northern Ireland — to be given shares in the broadcaster as part of an incentive scheme.

Revenues at the group rose to £6.6mn in the year to May 2023, from £3.6mn in the 12 months before. Television ad revenue climbed to £4.2mn, from £3mn the year before, despite reports of an advertising boycott. Digital revenues grew fourfold to £2.1mn. Marshall also owns an online media group, UnHerd.

GB News is facing a dozen investigations over potential breaches of broadcasting rules by the media watchdog, which has already found against the broadcaster several times before. 

On Monday, Ofcom said it had raised “significant concerns” about editorial controls after ruling that comments made on air by actor Laurence Fox were “clearly and unambiguously misogynistic”.

Marshall was among the suitors for the Daily Telegraph last year. People close to the situation say that he has indicated his interest in any future sale if the government throws up obstacles to the ownership of RedBird IMI, which has taken control of the newspaper. 

Media executives expect the government to push the deal for a more detailed “phase 2” investigation given concerns over RedBird IMI’s majority funding from Abu Dhabi, which could lead it to seek outside investors or even a sale.