The Daily Telegraph is set to be acquired by an investment consortium spearheaded by US private equity firm, Redbird Capital Partners, potentially concluding two years of ownership ambiguity.
Redbird Capital Partners, which initially purchased the broadsheet newspaper from Lloyds bank in 2023 as part of a joint venture, is the principal investor in a group of media backers poised to take over the Telegraph in a deal valued at £500m, as reported by City AM.
Provided it clears antitrust and proper owner checks, the deal will put an end to a prolonged period of uncertainty for the 170 year old paper. In June 2023, the Barclay family lost possession of the paper to Lloyds, triggering an auction where Redbird IMI, a collaboration between Redbird Capital and Abu Dhabi’s sovereign wealth fund IMI, placed a successful bid of £600m.
However, the then Conservative government blocked the deal, swiftly passing legislation to prohibit foreign states from owning news organisations.
Under the new arrangement led by Redbird, IMI, a state-owned media investment fund, will retain a minority stake in the Daily Telegraph, facilitated by a recent change in law that has paved the way for the deal.
Telegraph deal cements Redbird’s status as major UK player
The agreement solidifies Redbird’s position as a major investor in UK media and entertainment assets. Founded by Gerry Cardinale, the New York-based private asset fund already owns British production company All3media and holds a stake in the sports group that controls Liverpool football club.
Its portfolio also includes notable names such as Italian football club AC Milan and the Alpine F1 team. Furthermore, there are reports of potential talks to merge All3media with ITV.
Cardinale, who established Redbird in 2014, welcomed the Telegraph acquisition as a “new era” for the publication and praised the UK as a “great place to invest” in a statement. “Having spent time with [editor] Chris Evans, [chief executive] 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,” he said.
The preliminary deal has yet to be finalised, with Redbird stating it remains “in discussions” with several UK-based investors who would acquire minority stakes in the paper should the agreement proceed. Earlier this month, it was reported that Lord Rothermere, the proprietor of the Daily Mail and i newspaper, was considering taking a minority stake in the paper.
