Redbird Capital Partners has reached an agreement to acquire The Telegraph, one of Britain’s oldest and most influential newspapers, in a £500 million ($674 million) deal.
The Conservative-leaning newspaper had been the subject of a two-year takeover saga that began when The Telegraph and The Spectator magazine were seized by Lloyds bank after the Barclay family failed to repay debts of more than £1 billion.
Redbird IMI, a joint venture between Redbird Capital and United Arab Emirates-based International Media Investments, effectively gained control of the titles in 2023, after providing a £600 million loan to the Barclay family. But the Conservative government at the time blocked the acquisition by adopting new regulations preventing foreign states from taking ownership of the press.
Redbird Capital said Friday that it would become the “sole control owner” of The Telegraph, and the firm is in talks with U.K.-based investors about joining the group as minority shareholders.
Redbird Capitals also said IMI will participate as a minority investor subject to ongoing legislation on foreign ownership. IMI is controlled by Sheikh Mansour bin Zayed Al Nahyan, the vice-president of the UAE and owner of Manchester City football club.
Last week, the current Labour government announced plans to allow foreign states to own up to 15% of British newspapers. Culture Secretary Lisa Nandy said the change will limit the scope for foreign state control or influence of news organizations while still providing greater flexibility in seeking investment that supports their long-term sustainability.
Other media owners were reportedly in talks to acquire The Telegraph, including the British-born owner of The New York Sun, Dovid Efune, who was still seeking support for his bid on Friday afternoon.
Efune pointed out in an article that was shared on X that Redbird Capital still has significant hurdles to overcome, and no final agreements are in place. He claims that his offer for The Telegraph is “within sight of the finish line, with the bulk of the needed funding committed.”
Efune has assembled what he describes as a “distinctly British” bid for The Telegraph, which includes the backing of financier Jeremy Hosking and former Conservative cabinet minister Nadhim Zahawi.
“Our acquisition group is also distinctly devoted to journalism,” Efune wrote in the article. “We don’t come with a team of financial engineers or restructuring gurus.”
“I would urge all of The Telegraph’s stakeholders to hold on just a little longer and make known your support for the British bid,” he added.
Gerry Cardinale, founder and managing partner of Redbird Capital, said the acquisition marks the beginning of a “new era for The Telegraph” as he seeks to grow the brand in the U.K. and internationally. He plans to invest in the newspaper’s 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 U.K.,” Cardinale said.
Cardinale founded Redbird Capital in 2014. The firm, which invests in sports, media and financial services companies, said it currently has $12 billion in assets under management.
Redbird Capital owns the Italian football club AC Milan and has an investment in Fenway Sports Group, the owner of the Boston Red Sox baseball team and Liverpool Football Club. The firm also has a stake in Skydance Media, which is currently in the process of merging with TV and film giant Paramount Global.
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