The Daily Telegraph, a long time ago British newspaper considered close to the country’s conservative party, is about to change ownership – again.
Redbird Capital Partners, an American investment firm, said on Friday that it reached a preliminary agreement to buy control of the company to which the newspaper belongs, Telegraph Media Group, valued at £ 500 million, or about $ 3.85 billion).
This Friday’s deal marks the latest turnaround in a long-standing acquisition drama involving The Telegraph, which, for much of its 170 years of history, was considered a kind of official organ of the British Conservative Party.
Redbird had already bought control of the newspaper through a joint venture with the International Media Investments, a background controlled by a member of the royal family of Abu Dhabi. According to this plan, the newspaper would be supervised by Jeff Zucker, former president of CNN.
However, this agreement was blocked in 2023 after protests in Parliament on the property of British media assets by foreign states. Last year, the government led by conservatives passed a law banning foreign state investors from having British newspapers.
The Joint Venture, known as Redbird IMi, kept control of The Telegraph while looking for other offers.
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After the collapse of the Redbird IMI plan, other media tycoons would have considered proposals for the newspaper. The most determined was Dovid Efune, British by birth and owner of The New York Sun, although he faced difficulties to secure funding before a deadline at the end of last year.
The Spectator, an influential magazine that was part of The Telegraph controlling group, was sold for £ 100 million last year to Paul Marshall, a British media -funds that include the right -wing TV channel GB News.
As part of Friday’s agreement to The Telegraph, Redbird will buy most of its partner’s participation, although it is expected that IMI maintain a small participation, depending on a change in foreign property law.
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Last week, the current government, led by the Labor Party, announced that it would relax this restriction, allowing foreign state entities to hold up to 15% in newspapers. The government cited the importance of attracting investments to journalistic media. This has paved the way for Redbird’s revised offer, as IMI is a minority investor in the consortium.
Redbird said it is in negotiations to attract British investors such as minority shareholders “with printed media experience and strong commitment to preserving The Telegraph’s editorial values.”
With 11 years of existence, Redbird is a known investor in the media sector, with appearances in the Skydance Media movie studio; at Fenway Sports Group, owner of the Boston Red Sox baseball team and Liverpool and Milan soccer teams; and in the regional sports network of the New York Yankees.
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The investment firm said it plans to expand the international presence of The Telegraph, “particularly in the United States,” as well as its digital operations.
“We believe the UK is a great place to invest, and this acquisition is an important part of Redbird’s Redbird portfolio of media and entertainment in the UK,” said Redbird Founder Gerry Cardinale in a statement.
