Daily Telegraph to Be Acquired by U.S. Firm RedBird After Prolonged Ownership Uncertainty
U.S. private equity firm RedBird Capital has struck a deal to take control of the Daily and Sunday Telegraph, ending a two-year period of ownership uncertainty for the iconic British newspapers.
The agreement involves RedBird acquiring the stake previously held by Emirati royal Sheikh Mansour bin Zayed Al Nahyan, who had earlier helped finance a joint bid with RedBird to acquire the titles. That attempt was blocked by the UK government, which introduced legislation to prevent foreign governments from owning British newspapers or news magazines.
The proposed acquisition will still require regulatory clearance before it can be finalised.
The Telegraph newspapers and The Spectator magazine were initially put up for sale by Lloyds Bank after it took control from the Barclay family, who had defaulted on debts linked to the titles. In an effort to bypass the auction, RedBird and Sheikh Mansour’s International Media Investments (IMI) paid off the debts in full. But since the funding was largely provided by IMI, the UK government stepped in to prevent the group from taking control, citing concerns over state-backed media ownership.
Under the new arrangement, IMI is expected to retain a small minority stake – reportedly under 15% – while RedBird takes the majority share and assumes operational control.
Last year, The Spectator was sold separately to hedge fund billionaire Sir Paul Marshall in a £100 million deal.
Sources close to the transaction indicate that RedBird and IMI will recover the full amount they had previously invested, suggesting the financial structure of the new deal ensures no losses from the earlier blocked bid.
Telegraph staff have reportedly welcomed the move after years of instability, during which concerns mounted about strategic direction and long-term investment. RedBird founder Gerry Cardinale told the BBC he sees significant potential to grow the Telegraph’s influence and subscriber base in the United States, noting a gap in the market for its editorial positioning.
RedBird Capital has a varied portfolio, including ownership of Italian football giant AC Milan. The acquisition marks the firm’s deepening involvement in the global media landscape.
