RedBird Capital Partners has abandoned plans to acquire the Telegraph Media Group.
The private equity group, was leading a transatlantic consortium, which included British investors, to complete the £500m deal, which would include the Telegraph and the Spectator.
At the time the deal was announced, RedBird founder Gerry Cardinale stated:
“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 the UK is a great place to invest [and] we have tremendous conviction in the growth potential of this incredibly important cultural institution.”
READ – RedBird Capital’s £500million deal to buy The Telegraph
However, since that time pressure has increased on the investment group, not least from within the Telegraph’s current and former editorial teams.
In recent weeks, reports in the paper had explored links between their future owners and the Chinese state. RedBird has denied any Chinese involvement in the proposed acquisition.
“On the one hand, it’s no secret that I, all the senior editors and many of our writers had concerns about this bid,” The Daily Telegraph editor, Chris Evans told staff.
“On the other hand, it’s also obvious that this process has gone on far, far too long. The Telegraph deserves owners who care about journalism and who will invest. We will do our best to ensure this process ends as soon as possible – with a buyer who shares our passion and our ambition for The Telegraph.”
It’s been a long and complicated journey for the publisher, which was originally sold to RedBird IMI in 2023, which last year put it up for sale following government legislation around foreign state ownership.
That is why when it returned it was a consortium, featuring British backers, including Daily Mail owner, Lord Rothermere and DAZN’s Sir Leonard Blavatnik.
RedBird IMI owns Lime Picture’s parent company, All3Media and has been linked with a bid for ITV.
READ MORE – Report – ITV in merger talks with RedBird IMI
Today RedBird released the following statement:
”RedBird has today withdrawn its bid for the Telegraph Media Group.
“We remain fully confident that the Telegraph and its world-class team have a bright future ahead of them and we will work hard to help secure a solution which is in the best interests of employees and readers.”
While the original deal had been signed in principle, it still would have had to pass regulatory and public interest approval – including Ofcom and the competition watchdog.
Anna Jones, the Chief Executive of Telegraph Media Group, said to the paper:
“I will now work with the board of independent directors on next steps and what this means for the future ownership of the business.
“This process has been challenging and unpredictable but your hard work and continued patience is a credit to you all.”
