A consortium spearheaded by RedBird Capital Partners, a U.S. investment firm, is poised to acquire the publisher of the historic Daily Telegraph newspaper in the UK for approximately 500 million pounds, equivalent to around $674 million. This announcement was made on Friday as both parties came to an agreement.
The head of RedBird, Gerry Cardinale, expressed that this acquisition marks the commencement of a transformative period for The Telegraph. The consortium intends to expand the brand’s presence within the UK and internationally, investing in technological advancements and broadening the subscriber base.
Previously, Telegraph Media Group, which was under the ownership of the Barclay family, had been placed on the market as a means for the family to address their financial obligations. The group oversees the Daily and Sunday Telegraph newspapers along with the weekly newsmagazine, The Spectator, all known for their conservative alignment. In 2023, an offer was made by RedBird IMI, a consortium backed by RedBird and Sheikh Mansour bin Zayed Al Nahyan, an eminent member of Abu Dhabi’s royal family.
However, the consortium retreated from the acquisition last year after encountering resistance from the UK government, which had begun crafting legislation to curb foreign state ownership of British media outlets. In the current transaction, Abu Dhabi’s IMI will obtain a minority share, limited to no more than 15%, as a constituent of the buying consortium. The deal is pending approval from UK regulators.
RedBird is no stranger to substantial investments, having stakes in various ventures such as AC Milan football club, the parent body of Liverpool FC, and Skydance, a film production company.
Anna Jones, the CEO of Telegraph Media Group, commented on the agreement, highlighting RedBird Capital Partners’ ambitious growth plans which aim to capitalize on the group’s existing achievements and maximize its potential across different business facets.
Meanwhile, The Spectator was sold in a separate transaction in September to Paul Marshall, a British hedge fund investor.