The German publisher of Bild and Die Welt says it wants to turn The Telegraph into “the most read and intellectually inspiring centre-right media outlet in the English-speaking world.”
Family-owned company, Alex Springer, has reached a £575m agreement with RedBird IMI to buy the publishing group, which is significantly more than the £500m tabled by the Daily Mail and General Trust.
According to CEO, Mathias Döpfner, the group has been eyeing the publisher for many years.
“Axel Springer founded his company in 1946 under a British press licence. He built his company inspired by the tradition of Fleet Street. The Telegraph was his North Star,” he explained.
“More than 20 years ago, we tried to acquire The Telegraph and did not succeed. Now our dream comes true. To be the owner of this institution of quality British journalism is a privilege and a duty. We want to grow the Telegraph, while preserving its distinctive character and legacy, to help it become the most read and intellectually inspiring center-right media outlet in the English-speaking world. The Telegraph stands for freedom, personal responsibility, democratic values and a belief in open societies and market economies. These convictions closely align with our Axel Springer essential values.”
READ MORE – RedBird pulls out of £500million Telegraph bid
Alex Springer said that both they and Red Bird IMI saw “compelling benefits to the transaction.” Stating that it would “preserve the integrity of a heritage media brand and provide it with an exciting platform for growth and expansion into other geographies, while ensuring a commitment to high-quality, independent journalism and media plurality in the UK.”
“These Essentials do not limit editorial freedom and independence. They transparently define our societal values. Editorial independence is sacrosanct at Axel Springer. We believe that the best way to safeguard that is through financial and economic success,” continued Döpfner.
“We see massive growth potential for TMG. Technological excellence and transformation with the best Artificial Intelligence tools is mission critical for this. We look forward to working with the editorial teams led by Chris Evans and Allister Heath and the management team led by Anna Jones.”
Döpfner continues: “We are aware that the amazing journalists and employees at TMG have been operating in an extended period of uncertainty. That is never easy. We want to bring that uncertainty to an end as soon as we can and welcome you into Axel Springer.”
The announcement added that the publisher would “turbocharge” the expansion of Telegraph Media Group into the United States market, “leveraging the significant expertise of its media brands Politico and Business Insider.”
“Following a swift and efficient negotiation, we are pleased to have reached an agreement with Axel Springer to purchase RedBird IMI’s interest in the Daily Telegraph newspaper,” stated RedBird IMI.
“With the strength of their commercial offer and a straightforward regulatory path to ownership we believe that Axel Springer is well placed to take the Telegraph forward into its next chapter. Our team is now working closely with the UK Government to obtain the necessary approvals to finalise this transaction.”
The two companies said that they believed the deal was “fully compliant with the UK’s Foreign State Influence regime.”
They will be talking to the Department of Culture, Media and Sports (DCMS) and other stakeholders over the coming weeks.
