London (AFP) – British right-wing newspaper The Telegraph has agreed to a takeover by US investment group RedBird Capital Partners, ending a two-year saga marked by UK government intervention over press freedoms. RedBird has struck an “in-principle agreement” to purchase The Telegraph Media Group (TMG), which comprises the 170-year-old paper’s print and online operations, for £500 million ($670 million), the pair announced in a statement on Friday.
This conclusion of a protracted sale involved an intervention by the previous Conservative government. US-Emirati consortium RedBird IMI, comprising Redbird Capital, had already struck a deal for TMG in late 2023. However, the previous UK government triggered a swift resale amid concern over the potential impact on freedom of speech given Abu Dhabi’s press censorship record.
RedBird Capital Partners on Friday stated that the agreement struck with TMG makes it “the sole control owner” and “unlocks a new era of growth for the title” founded in 1855. “RedBird’s growth strategy will include capital investment in digital operations, subscriptions, and journalism as it looks to expand The Telegraph internationally.” The US group added that it is in “discussions with select UK-based minority investors with print media expertise and strong commitment to upholding the editorial values of” the paper.
This acquisition comes after the current Labour government recently struck a trade agreement with the United States, as Prime Minister Keir Starmer enjoys cordial relations with US President Donald Trump despite the latter’s tariffs blitz.
“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 UK,” said RedBird’s founder and managing partner, Gerry Cardinale. As for The Telegraph, he added that RedBird has “tremendous conviction in the growth potential of this incredibly important cultural institution.”
TMG chief executive Anna Jones said RedBird “will unlock” The Telegraph’s “full potential.” “RedBird Capital Partners have exciting growth plans that build on our success,” she added. The US group stated that it will look to expand The Telegraph’s global reach, particularly in the United States. “RedBird’s growth strategy will include capital investment in…digital operations to continue driving subscriptions, using best-in-class data analytics and Artificial Intelligence tools,” it added.
Last year, TMG agreed to sell British right-wing magazine The Spectator to hedge fund manager Paul Marshall for £100 million. At the end of 2024, Britain’s Guardian Media Group struck a deal to sell the world’s oldest Sunday newspaper, The Observer, to online news company Tortoise Media. Tortoise has carved out an online niche with in-depth reports, characterizing its overall approach as not “breaking news but what’s driving the news” with investigations and podcasts.
© 2024 AFP
