Telegraph Media Group is to be sold to a “transatlantic consortium” led by RedBird Capital Partners.
The emphasis here is on “transatlantic” as the £500m deal will include money from British investors.
That’s important because Abu Dhabi backed investment firm, RedBird IMI, previously had a deal in place to acquire the Telegraph and The Spectator, but this was blocked in 2023, when the previous government issued a Public Interest Intervention Notice to block foreign ownership.
RedBird IMI had effectively taken control of the publisher, having agreed loans to repay debts owed by its previous owners. However, the government ruled that it must sell the asset over fears about 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,” said founder, Gerry Cardinale.
“We believe the UK is a great place to invest [and] we have tremendous conviction in the growth potential of this incredibly important cultural institution.”
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Earlier this month, the Department for Culture, Media and Sport announced that it was changing ownership rules, to allow foreign states to own up to 15% of British newspapers. This was seen as opening the door to the deal, which has been ongoing for several years.
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This means that US-firm RedBird Capital will acquire Telegraph Media Group from RedBird IMI. Although it’s likely that IMI will retain a 15% stake.
RedBird IMI is a joint venture between RedBird Capital Partners (25%) and International Media Investments (75%). It also owns Skydance Media and Artists Equity. IMI is controlled by Sheikh Mansour bin Zayed Al Nahyan – who owns Manchester City.
It also acquired All3Media for £1.15bn, that was its biggest investment to date and means it now owns 50 production labels, including Lime Pictures, Studio Lambert, Raw, Two Brothers and Neal Street Productions. There have been reports that it’s seeking to merge its production business with ITV Studios.
While the in-principle agreement has been signed, it will have to pass regulatory and public interest approval.
