RedBird Capital Partners has reached an agreement in principle to acquire the Telegraph Media Group in a £500 million ($674 million) deal, ending a protracted two-year effort to secure new ownership for the conservative-leaning British media institution. The consortium, led by RedBird founder Gerry Cardinale, will take control of both the Daily Telegraph and Sunday Telegraph, pending regulatory approval.
"This transaction marks the start of a new era for the Telegraph as we look to grow the brand in the UK and internationally, invest in its technology and expand its subscriber base," Cardinale said Friday.
The agreement comes after the Telegraph's previous owner, the Barclay family, was forced to sell the titles to repay debts owed to Lloyds Banking Group. In 2023, RedBird partnered with Sheikh Mansour bin Zayed Al Nahyan-vice president of the United Arab Emirates-under the banner of RedBird IMI to finance the acquisition. However, the deal collapsed after the British government moved to block foreign state ownership of UK newspapers.
As a result, RedBird Capital is proceeding as the sole controlling investor, while IMI will retain a minority stake under new legislation permitting up to 15% foreign state ownership of UK press assets. "We're delighted with this announcement and know that the Telegraph has a bright future under the control of Gerry Cardinale and RedBird Capital," an IMI spokesperson said.
Anna Jones, CEO of Telegraph Media Group, welcomed the development. "RedBird Capital Partners have exciting growth plans that build on our success - and will unlock our full potential across the breadth of our business," she said.
The deal, while fully funded, will be reviewed by the Competition and Markets Authority and the Department for Culture, Media and Sport under public interest scrutiny. Culture Secretary Lisa Nandy is expected to initiate the review. The process was previously led by investment banks Raine and Robey Warshaw, where former Chancellor George Osborne is a partner.
RedBird, which also owns stakes in the parent company of Liverpool Football Club and is in talks to acquire a portion of Paramount's entertainment division, says it intends to scale the Telegraph's reach in the United States. Chris Evans, editor of the Daily Telegraph, said, "With the right plan and the right investment by ambitious new owners, this venerable title can look forward to an era of unprecedented success."
The Spectator, formerly owned by the Telegraph Media Group, was sold separately to hedge fund investor Paul Marshall in September. Meanwhile, Dovid Efune, publisher of the New York Sun, continues to seek financing for a competing bid with the backing of Brexit donor Jeremy Hosking and former UK Chancellor Nadhim Zahawi. However, his offer remains underfunded and is not expected to challenge RedBird's path to acquisition.
RedBird has also held discussions with domestic investors, including DMGT, owner of the Daily Mail, about a potential minority stake of 9.9% to mitigate plurality concerns. Although DMGT pulled out of the original auction due to political and competition risks, collaboration on cost-sharing initiatives remains a possibility.
