Telegraph to be bought by US firm RedBird Capital for £500m

The Telegraph is to be bought by a consortium led by US investment firm RedBird Capital for about £500 million.

It is the latest turn in a tumultuous two-year takeover process for the 170-year-old newspaper business.

RedBird IMI, which was partly backed by the US firm but majority-owned by Sheikh Mansour bin Zayed Al Nahyan, vice president of the United Arab Emirates, originally agreed to buy the media firm and The Spectator in 2023.

However, last year, the Government ultimately blocked the move after introducing new rules to stop foreign state ownership of the press.

The Spectator has since been sold to hedge fund tycoon Sir Paul Marshall’s OQS Ventures business for £100 million.

On Friday, RedBird Capital revealed it has now reached an in-principle agreement to become the controlling owner of the business.

It has also pledged to increase capital investment into digital operations, subscriptions and journalism as it looks to grow the brand internationally.

It is understood that Abu-Dhabi’s IMI will now take a minority stake in The Telegraph as a member of the consortium.

The stake will be no more than 15%, after the Government announced the limit for foreign state ownership of newspapers and news magazines last week.

It is understood that RedBird has also held talks with Lord Rothermere’s DMGT, which owns the Daily Mail and the Metro, about taking an almost 10% stake.

RedBird has investments in AC Milan, film production giant Skydance and Liverpool FC owner Fenway Sports Group.

Gerry Cardinale, founder and managing partner of RedBird, said: “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.

“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.”

Anna Jones, chief executive of Telegraph Media Group, said: “Telegraph Media Group is an award-winning news media organisation, with exceptional journalism at its heart, supported by leading commercial expertise, a commitment to innovation and a laser focus on data to drive strategy.

“RedBird Capital Partners have exciting growth plans that build on our success – and will unlock our full potential across the breadth of our business.”

RedBird’s deal comes months after RedBird IMI had started talks with its original preferred bidder Dovid Efune, the British-born publisher of the New York Sun.

Mr Efune’s efforts to buy the business stalled because of questions over his financing of the deal.

But on Friday, he criticised the new takeover deal, stating that a British bid “is best” for the newspaper firm.

“We’re confident our British group represents the best custodianship of this national treasure by some distance,” he said.