RedBird, the new proprietor of The Telegraph, files with Whitehall to signal a shift in its operations
The Daily Telegraph Sale Nears Completion, Yet Remains Under Scrutiny
The acquisition of The Daily Telegraph by RedBird Capital Partners is moving closer to completion, with the firm set to formally notify Whitehall of their plans to gain control of the prestigious British newspaper. However, the deal remains under some political scrutiny, as concerns over foreign links and regulatory issues persist.
RedBird Capital has reached an "in-principle agreement" to purchase Telegraph Media Group for £500 million, marking the conclusion of a nearly two-year protracted sale process. The deal includes significant funding from IMI, a state-backed investment vehicle from Abu Dhabi controlled by Sheikh Mansour bin Zayed Al Nahyan. IMI's involvement overcame a key regulatory hurdle when an opposing motion in the House of Lords was defeated, despite substantial debate.
RedBird has stated its intent to invest in The Telegraph’s digital, subscription, and journalistic operations, aiming to expand the paper internationally and maintain editorial independence. The firm is reportedly in discussions with UK-based minority investors with expertise in print media to join the ownership structure, though specific additional investors beyond IMI have not been publicly named.
However, the acquisition has sparked concerns due to alleged Chinese links to RedBird’s leadership, prompting calls to block or investigate the deal. RedBird has firmly denied any Chinese involvement or influence, emphasizing a commitment to editorial independence as central to their media investments.
Meanwhile, The Spectator, another prominent British publication, has undergone a change of ownership. Last year, it was sold for £100m to Sir Paul Marshall, the hedge fund billionaire. Lord Gove, the former cabinet minister, has been installed as the editor of The Spectator since its sale.
The Telegraph titles' parent company was forced into insolvency proceedings in 2023 by Lloyds. Other bidders, including Dovid Efune, the owner of The New York Sun, tried to gatecrash the deal, but the RedBird-led transaction is still ongoing. Sir Leonard Blavatnik and Daily Mail proprietor Lord Rothermere are preparing to buy minority stakes as part of the RedBird-led transaction.
The issuance of a public interest intervention notice (PIIN) by the DCMS could prompt investigations by Ofcom and the Competition and Markets Authority into the £500m takeover. The removal of the IEO is likely to result in the DCMS issuing a new PIIN. The notification by RedBird Capital's lawyers is expected to pave the way for the lifting of the IEO, which was imposed by Lucy Frazer, the then Conservative culture secretary, in December 2023.
The RedBird-led transaction for The Daily and Sunday Telegraph titles represents another step towards concluding the 27-month hiatus over The Daily Telegraph's ownership. The move was approved by the House of Lords last month, allowing a UAE state-backed investor - IMI - to acquire a stake of up to 15% in The Daily Telegraph as part of the RedBird deal.
As the acquisition nears completion, RedBird Capital continues to emphasize growth and independence in the new ownership, with discussions ongoing with UK-based investors to join the ownership structure. The firm has also reiterated its commitment to editorial independence, denying any foreign influence over the content of The Telegraph. The final outcome of the deal will be closely watched by both the media industry and political circles.
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