US private equity firm acquires The Telegraph newspaper
The Daily Telegraph is on the verge of being sold to a consortium led by US private equity firm Redbird Capital Partners for £500 million, ending two years of uncertainty over its ownership.
Redbird Capital Partners, which previously acquired the broadsheet newspaper from Lloyds Bank in 2023, will head a group of media investors set to take control of the Telegraph. If the deal passes antitrust and proper owner checks, it will mark the end of a prolonged period of uncertainty for the 170-year-old paper.
In June 2023, the paper was repossessed from the Barclay family and sold to Lloyds, sparking an auction in which Redbird IMI, a joint venture between Redbird Capital and the Abu Dhabi sovereign wealth fund IMI, successfully bid £600 million. However, the deal was later blocked by the then Conservative government due to legislation barring foreign state ownership of news organizations.
A recent change in law has enabled IMI, a state-owned media investment fund, to still own a minority stake in the Daily Telegraph under the new Redbird-led arrangement.
This acquisition positions Redbird as a significant investor in UK media and entertainment assets. The New York-based private asset fund, founded by Gerry Cardinale, also owns British production company All3media and has a stake in the sports group that owns Liverpool football club. It is also rumored to be in talks to merge All3media with ITV.
Cardinale, who founded Redbird in 2014, has praised the UK as a great place to invest and has expressed high hopes for the Telegraph's growth potential. The preliminary deal is still in the works, with Redbird discussing potential minority stakes in the paper with several UK-based investors, including Lord Rothermere, the proprietor of the Daily Mail and i newspaper.
Industry analysts speculate that Rothermere could potentially take up a minority stake in the paper, which could complicate regulatory approval and the acquisition process. Redbird is specifically seeking partners with relevant media experience to guide the newspaper's future direction and growth.
- Redbird Capital Partners, now a significant investor in UK media and entertainment assets, owns British production company All3Media and has a stake in the sports group that owns Liverpool football club.
- Industry analysts speculate that Lord Rothermere, the proprietor of the Daily Mail and i newspaper, could potentially take up a minority stake in the Daily Telegraph, which could complicate regulatory approval and the acquisition process.
- Cardinale, who founded Redbird in 2014, has expressed high hopes for the Telegraph's growth potential and is specifically seeking partners with relevant media experience to guide the newspaper's future direction and growth.
