Today (23 May), US-headquartered RedBird Capital Partners announced an “in principle agreement” to buy the Telegraph in a £500m deal.
The media group’s future ownership has been up in the air since June 2023, when Lloyds Banking Group took control of its parent company following a long-running dispute over £1bn of debt with members of then-owners, the Barclay family.
Subsequently, Abu Dhabi-backed RedBird IMI’s takeover plans were thwarted over foreign ownership of media rules. RedBird IMI is a joint investment vehicle with RedBird Capital holding a minority stake.
The new deal would be RedBird Capital Partner’s biggest investment in UK print media in ten years. The group also owns All3Media, Fulwell Entertainment and Fenway Sports Group which includes Liverpool FC and the PGA Tour.
It currently manages $12bn (£9bn) of assets globally.
RedBird said it was in discussions with “select UK-based minority investors” who have print media expertise and a strong commitment to “upholding the editorial values” of the 170-year-old Telegraph.
Daily Mail & General Trust owner Lord Rothermere has been mooted as a possible investor.
RedBird founder and managing partner Gerry Cardinale commented: “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.”
RedBird plans to expand its reach in the United States, in particular.
“We believe that the UK is a great place to invest, and this acquisition is an important part of RedBird’s growing portfolio of media and entertainment companies in the UK,” Cardinale said.
“Having now spent time with Chris Evans, Anna Jones and the entire senior management team at The Telegraph, we have tremendous conviction in the growth potential of this incredibly important cultural institution.”
Evans is the editor of The Daily Telegraph, and Jones is CEO of Telegraph Media Group.
IMI will also participate in the acquisition as a minority investor, “subject to the passage of secondary legislation regarding foreign ownership thresholds”.
Earlier this month the government announced that State Owned Investors, including sovereign wealth funds, will be allowed to own a stake of up to 15% of British newsbrands under new laws.
The Daily Telegraph and Courier was first published in 1855.
In 1994 it launched ‘The Electronic Telegraph’, and lays claim to being the first national newspaper in Britain to have a website.
The Telegraph’s former sister title, The Spectator, was sold to billionaire Sir Paul Marshall for £100m last September.
Telegraph Media Group posted sales up 5.42% to £268m in the year to December 2023, its most recent publicly-available results. Operating profit prior to exceptionals jumped by 35.2% to £54.2m.
The group booked a near-£280m exceptional hit due to loans owed by Barclay family businesses that are unlikely to be repaid.
