The Telegraph to be acquired by US firm RedBird Capital Partners
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RedBird founder Gerry Cardinale confirmed the move, which will see his firm take over ownership from RedBird IMI, an investment fund partially backed by the United Arab Emirates (UAE).
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FILE -The Daily Telegraph newspaper with the front page of French President Emanuel Macron is seen at a supermarket in London, March 21, 2024 (AP Photo/Kin Cheung, File)
One of the UK's leading newspapers, The Telegraph, is poised for a new chapter as US-based private equity firm RedBird Capital Partners announced on Friday it has reached a preliminary agreement to acquire the publication in a £500 million ($675.3 million) deal. The acquisition is intended to bring an end to a period of uncertainty that has left the newspaper without a formal owner for two years.
RedBird founder Gerry Cardinale confirmed the move, which will see his firm take over ownership from RedBird IMI, an investment fund partially backed by the United Arab Emirates (UAE). The prior deal with RedBird IMI was blocked by the UK government in 2023 due to legislation that prohibits foreign state control of British media, citing concerns over press freedom.
"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," Cardinale said.
To navigate regulatory restrictions, the revised structure ensures that RedBird IMI will retain only a 15% minority stake, and the UAE will have no role in editorial oversight, in line with UK law. The UK culture secretary has launched a public interest review of the transaction, which must be cleared before the sale is finalized.
The Telegraph stated: "The newspaper has not had an owner over the past two years, while the deal will bring an end to grueling uncertainty and deliver significant investment in journalism."
Founded in 1948, The Telegraph has undergone numerous ownership changes. Most recently, it was transferred to Lloyds Banking Group in June 2023 after the previous owners—the Barclay family—defaulted on more than £1 million in debt. Lloyds then sold the paper to RedBird IMI, but mounting political and regulatory opposition forced it back on the market.
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RedBird Capital is expected to work alongside a group of UK-based media investors to ensure domestic control of the publication remains intact. According to reports, RedBird plans to expand digital operations, grow its US subscriber base, and invest in content verticals like travel and events to diversify revenue.
Telegraph Media Group CEO Anna Jones welcomed the development, saying RedBird's plans "build on our success and will unlock our next chapter of growth."
This acquisition marks RedBird's latest expansion in the media and entertainment sector, adding to a portfolio that includes stakes in Skydance Media, AC Milan, and the parent company of Liverpool FC.
