A consortium led by US private equity firm RedBird Capital has agreed in principle to buy The Telegraph for £500 million, bringing an end to two years of uncertainty over the ownership of the titles, including the Daily Telegraph and Sunday Telegraph.
Gerry Cardinale, founder of RedBird Capital, will lead the acquisition which also involves British investors as minority partners. The new ownership plans to grow The Telegraph’s brand in the UK and internationally, invest in technology, and expand the subscriber base. Cardinale expressed confidence in the UK market, calling it a “great place to invest” and emphasizing the publication’s cultural significance.
The deal, which values the right-leaning broadsheet at around £500 million ($673 million), follows a complex history. In 2023, the Abu Dhabi-backed RedBird IMI consortium initially acquired The Telegraph, but the British government’s move to block foreign state ownership forced the titles back on sale. However, a recent government decision allowing foreign state investors to hold up to 15% stakes in UK newspapers has paved the way for this transaction.
While RedBird Capital will become the sole controlling owner, it is currently in talks with select UK-based minority investors possessing print media expertise. International Media Investments (IMI), controlled by Sheikh Mansour bin Zayed Al Nahyan of the UAE, will retain a minority stake subject to UK legislation on foreign ownership.
According to The Guardian, the deal is fully funded and does not depend on additional investors joining. Discussions had involved potential investors such as Lord Rothermere’s DMGT group, which owns other British newspapers, but concerns over competition and political issues led to their withdrawal from the auction. The consortium’s goal is to secure cost savings and comply with UK competition and plurality regulations.
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Additionally, Reuters reports that RedBird Capital, which provided a quarter of the initial funding for RedBird IMI, will take sole control and views the UK as “a great place to invest,” reflecting its growing media portfolio.
This acquisition is expected to undergo regulatory scrutiny, including a public interest test by Culture Secretary Lisa Nandy and an investigation by the Competition and Markets Authority. RedBird’s ambitious plan aims to expand The Telegraph’s global reach, especially in the US. Chris Evans, editor of the Daily Telegraph, remarked that the publication looks forward to “an era of unprecedented success” under new ownership.
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Disclaimer: This article is based solely on information provided by credible sources. No additional opinions or unverified details have been added. All data and quotes reflect the content from the original reports.
