U.S. Investment Giant To Buy Britain's Telegraph Newspaper For $674 Million
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 (IMI), 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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
43 minutes ago
- Bloomberg
China and US Continue Trade Talks in London
Trade talks between the US and China got underway this afternoon in London. The Trump administration is signaling a willingness to remove restrictions on exports imposed as part of its global trade war in exchange for assurances that China is easing limits on rare earth shipments. The meeting is expected to extend into the UK evening and might spill into Tuesday. The first round of negotiations since the teams met a month ago is aimed at restoring confidence that both are living up to commitments made in Geneva, where a temporary truce was reached. That deal was seen as largely benefiting Beijing. Kevin Hassett, head of the White House's National Economic Council, appeared to indicate the US is willing to offer more concessions, though he added it would stop short of including the most sophisticated artificial intelligence chips made by Nvidia as part of any deal.
Bloomberg
an hour ago
- Bloomberg
Bloomberg Intelligence: US China Trade Talks Start in London With Aim to Ease Export Curbs
Watch Alix and Paul LIVE every day on YouTube: Bloomberg Intelligence hosted by Paul Sweeney and Alix Steel -Brendan Murray, Bloomberg Global Trade Editor, discusses U.S-China talks. The US and China have begun trade talks in London, with the US signaling a willingness to remove restrictions on some tech exports in exchange for assurances that China is easing limits on rare earth shipments. -Nathan Dean, Bloomberg Intelligence Senior Policy Analyst, discusses political news of the day. Senate Republicans plan to propose revised tax and health-care provisions to President Trump's $3 trillion economic package, despite criticism from Elon Musk. -Geetha Ranganathan, Bloomberg Intelligence Analyst on US Media, discusses Warner Brothers Discovery splitting into two independent companies: Global Networks and Streaming and Studios. Global Networks will include entertainment, sports, and cable television brands such as CNN, TNT, and TBS, and will hold a 20% stake in Streaming and Studios. -Ann Berry, Founder & Managing Partner at Threadneedle, discusses the latest on the markets. Despite a surge in stocks from April lows, market strategists are growing optimistic about US stocks, with some forecasting resilient economic growth and limited pullback over the summer.
Forbes
an hour ago
- Forbes
Oppose Car Bloat, London Assembly Members Tell Mayor
Old Mini next to new Mini. CarSized/montage A majority of Members of the London Assembly—the 25-member elected body that scrutinizes the work of the London Mayor—voted on June 5 to oppose 'carspreading,'the phenonomen of automobiles becoming wider, heavier and taller. This car bloat, also known as 'autobesity,' damages London's roads, said the vote, causing congestion, and putting pedestrians, cyclists and other drivers at greater risk of death and serious injury. Cars are getting bigger by an average of 1cm every two years, with most new cars now too large for U.K. minimum parking spaces. Elly Baker AM, who proposed the motion, said: 'London's streets weren't designed for larger vehicles like SUVs, which now make up a third of all cars on the road. Their greater size, weight, and higher [hoods] put vulnerable road users at greater risk, reduce available parking spaces, and cause more wear and tear on our roads.' She added: 'It's time we took sensible steps to manage the impact of oversized cars and ensure our streets remain safe and accessible for everyone.' The vote was won by 14 votes against eight. The motion states that the 'consequences of surging vehicle size undermine goals for road safety, air quality and put outsized pressure on public finances.' The Assembly now calls on the Mayor to write to the Department for Transport asking that they update vehicle regulations to introduce tighter limits on passenger vehicle size and bonnet height. The Mayor is further urged to write to HM Treasury asking that they introduce a progressive tax on passenger vehicle weight into Vehicle Excise Duty. The Assembly is also calling for London Councils to explore the feasibility of boroughs charging higher parking charges to SUVs to account for pressure they put on road space and local parking spaces. Today's BMW-built Mini is much wider than the British Motor Corporation's 1959 original, and is also taller and longer. Other famous car models—such as the VW Beetle and the Ford Fiesta—have also increased markedly in size and weight. Modern cars are larger partly because of airbags, crumple zones and air conditioning units, but also because consumers prefer larger motor vehicles—hence the success of SUVs. The motor vehicle 'arms race' has led to calls from motorists for road lanes to be widened and parking spaces to be enlarged. Roads in most British cities are becoming more and more choked as wider motor cars struggle to squeeze past each other. There's an epidemic of pedestrian-unfriendly 'pavement parking'—wheels half up on the sidewalk—and tempers fray when wing mirrors are bashed as porkier cars pass each other. Research from Transport & Environment (T&E) in 2022 found that 'autobesity'—car bloat—is real, with many cars getting too big for British roads, exceeding the 180 centimeter minimum for on-street parking. More than half of new cars sold in 2023 were too wide for the minimum specified on-street parking space (180 centimeters) in major U.K. cities. Off-street parking is now a tight squeeze even for the average new car, while large luxury SUVs often make it impossible. Fatter cars are heavier cars. And heavier cars cause more highway damage. Richard Hebditch, UK Director for T&E UK, said: 'The trend of cars getting wider has been progressing for decades and that trend will continue until the U.K. sets stricter limits. Currently we allow new cars to be as wide as trucks. This has meant our roads are now home to big SUVs and American style pick-up trucks that are parking on our footpaths, endangering pedestrians and cyclists and making everyone else on our roads less safe.' Paris voted to triple parking fees for SUVs in February last year.
