Latest news with #DMGT
Times
23-05-2025
- Business
- Times
RedBird Capital Partners to acquire The Telegraph, ending ownership battle
The Telegraph is about to be sold to a transatlantic consortium led by RedBird Capital Partners for £500 million, ending two years of uncertainty over its ownership. RedBird Capital's founder Gerry Cardinale has signed an agreement in principle to acquire control of The Telegraph from the investment vehicle RedBird IMI, which is majority backed by the United Arab Emirates. RedBird IMI was blocked by the government from taking full ownership of The Telegraph last year after parliamentary concerns over press freedom. RedBird Capital is expected to be joined in its ownership of the Telegraph by other British media investors. Lord Rothermere, owner of Daily Mail publisher DMGT, is understood to be in talks with Cardinale over taking a stake in the business of just shy
The Guardian
23-05-2025
- Business
- The Guardian
Consortium led by RedBird Capital agrees to buy Telegraph for £500m
A consortium led by the US private equity firm RedBird Capital has agreed to buy the Telegraph for £500m, bringing an end to two years of uncertainty over the future ownership of the titles. The firm's founder, Gerry Cardinale, has signed a deal in principle that will see the Daily Telegraph and Sunday Telegraph come under the ownership of a consortium that includes British investors. 'This transaction marks the start of a new era for the Telegraph as we look to grow the brand in the UK and internationally, invest in its technology and expand its subscriber base,' said Cardinale. 'We believe the UK is a great place to invest [and] we have tremendous conviction in the growth potential of this incredibly important cultural institution.' RedBird has been in talks with potential investors including Lord Rothermere's DMGT, owner of the Daily Mail, Metro and New Scientist, about taking a stake of 9.9%. Rothermere, who tried to buy the titles in 2004, pulled out of the auction last summer because DMGT feared it would be pulled into a long and complex battle over competition issues and political hurdles. RedBird said that it remains in talks with 'select UK-based minority investors with print media expertise'. RedBird Capital – which holds various investments including a stake in the parent company of Liverpool FC and is seeking to jointly acquire TV and film business Paramount – is buying Telegraph Media Group from RedBird IMI. The US private equity group contributed a quarter of the funding to RedBird IMI, which is controlled by sheikh Mansour bin Zayed al-Nahyan, the vice-president of the United Arab Emirates and owner of Manchester City football club. RedBird IMI was forced to put the titles back up for sale last spring after the British government passed a law blocking foreign states or associated individuals from owning newspaper assets in the UK. The Abu Dhabi-based RedBird IMI took control of the publishing group in November 2023 after agreeing to pay debts owed by the previous owners, the Barclay family, to Lloyds Banking Group. IMI is to retain an investment in the Telegraph and last week the government said it will allow foreign states to own stakes of up to 15% in British newspapers. No final deal for the Telegraph has yet been signed and a takeover will face regulatory hurdles, including a public interest test that will be triggered by the culture secretary, Lisa Nandy. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Dovid Efune, the owner of the New York Sun, who entered a short period of exclusive takeover talks late last year before failing to raise funds, is still attempting to mount a new bid with support from multimillionaire Brexit backer Jeremy Hosking. His bid also has the support of former UK chancellor Nadhim Zahawi, who was originally involved as a 'middleman' introducing RedBird IMI to the Barclay family, and had hoped to become chair of the newspaper group. RedBird said that it has ambitious plans to expand the global reach of the Telegraph, particularly in the US. 'With the right plan and the right investment by ambitious new owners, this venerable title can look forward to an era of unprecedented success,' said Chris Evans, editor of the Daily Telegraph.
Times
20-05-2025
- Business
- Times
Daily Mail publisher DMGT eyes minority stake in Telegraph sale
The publisher of the Daily Mail has been in discussions over acquiring a minority stake in the rival Telegraph newspapers amid a protracted two-year battle over the future ownership of the titles. Lord Rothermere, who controls the Daily Mail & General Trust (DMGT), took part in negotiations last week over a possible deal to take a 9.9 per cent stake in the Telegraph titles, Sky News reported. The two media titles would remain editorially independent but look to share operational costs, according to the report, which added that the status of the talks remained unclear. An update on the future ownership of the Telegraph from RedBird IMI, a joint venture part-funded by an Emirati royal, is anticipated this week. Redbird IMI, DMGT and Telegraph Media
Yahoo
19-05-2025
- Business
- Yahoo
Daily Mail-owner Rothermere eyes minority Telegraph stake in RedBird deal
The publisher of the Daily Mail has held talks in recent days about taking a minority stake in the Telegraph newspapers as part of a deal to end the two-year impasse over their ownership. Sky News has learnt that Lord Rothermere, who controls Daily Mail & General Trust (DMGT), was in detailed negotiations late last week which would have seen him taking a 9.9% stake in the Telegraph titles. It was unclear on Monday whether the talks were still live or whether they would result in a deal, with one adviser suggesting that the discussions may have faltered. One insider said that if DMGT did acquire a stake in the Telegraph, the transaction would be used as a platform to explore the sharing of costs across the two companies. They would, however, remain editorially independent. Sources said that RedBird and IMI, whose joint venture owns a call option to convert debt secured against the Telegraph into equity, were hoping to announce a deal for the future ownership of the media group this week, potentially on Thursday. However, the insider suggested that a transaction could yet be struck without any involvement from DMGT. The progress in the talks to seal new ownership for the right-leaning titles comes days after the government said it would allow foreign state investors to hold stakes of up to 15% in British national newspapers. That would pave the way for Abu Dhabi royal family-controlled IMI to own 15% of the Daily and Sunday Telegraph - a prospect which has sparked outrage from critics including the former Spectator editor Fraser Nelson. The decision to set the ownership threshold at 15% follows an intensive lobbying campaign by newspaper industry executives concerned that a permanent outright ban could cut off a vital source of funding to an already-embattled industry. RedBird Capital, the US-based fund, has already said it is exploring the possibility of taking full control of the Telegraph, while IMI would have - if the status quo had been maintained - been forced to relinquish any involvement in the right-leaning broadsheets. Other than RedBird, a number of suitors for the Telegraph have expressed interest but struggled to raise the funding for a deal. The most notable of these has been Dovid Efune, owner of The New York Sun, who has been trying for months to raise the £550m sought by RedBird IMI to recoup its outlay. On Sunday, the Financial Times reported that Mr Efune has secured backing from Jeremy Hosking, the prominent City investor. Another potential offer from Todd Boehly, the Chelsea Football Club co-owner, and media tycoon David Montgomery, has failed to materialise. RedBird IMI paid £600m in 2023 to acquire a call option that was intended to convert into ownership of the Telegraph newspapers and The Spectator magazine. That objective was thwarted by a change in media ownership laws - which banned any form of foreign state ownership - amid an outcry from parliamentarians. The Spectator was then sold last year for £100m to Sir Paul Marshall, the hedge fund billionaire, who has installed Lord Gove, the former cabinet minister, as its editor. The UAE-based IMI, which is controlled by the UAE's deputy prime minister and ultimate owner of Manchester City Football Club, Sheikh Mansour bin Zayed Al Nahyan, extended a further £600m to the Barclays to pay off a loan owed to Lloyds Banking Group, with the balance secured against other family-controlled assets. Other bidders for the Telegraph had included Lord Saatchi, the former advertising mogul, who offered £350m, while Lord Rothermere, the Daily Mail proprietor, pulled out of the bidding for control of his rival's titles last summer amid concerns that he would be blocked on competition grounds. The Telegraph's ownership had been left in limbo by a decision taken by Lloyds Banking Group, the principal lender to the Barclay family, to force some of the newspapers' related corporate entities into a form of insolvency proceedings. DMGT, RedBird and IMI all declined to comment.
Sky News
19-05-2025
- Business
- Sky News
Daily Mail-owner Rothermere eyes minority Telegraph stake in RedBird deal
The publisher of the Daily Mail has held talks in recent days about taking a minority stake in the Telegraph newspapers as part of a deal to end the two-year impasse over their ownership. Sky News has learnt that Lord Rothermere, who controls Daily Mail & General Trust (DMGT), was in detailed negotiations late last week which would have seen him taking a 9.9% stake in the Telegraph titles. It was unclear on Monday whether the talks were still live or whether they would result in a deal, with one adviser suggesting that the discussions may have faltered. One insider said that if DMGT did acquire a stake in the Telegraph, the transaction would be used as a platform to explore the sharing of costs across the two companies. They would, however, remain editorially independent. Sources said that RedBird and IMI, whose joint venture owns a call option to convert debt secured against the Telegraph into equity, were hoping to announce a deal for the future ownership of the media group this week, potentially on Thursday. However, the insider suggested that a transaction could yet be struck without any involvement from DMGT. The progress in the talks to seal new ownership for the right-leaning titles comes days after the government said it would allow foreign state investors to hold stakes of up to 15% in British national newspapers. That would pave the way for Abu Dhabi royal family-controlled IMI to own 15% of the Daily and Sunday Telegraph - a prospect which has sparked outrage from critics including the former Spectator editor Fraser Nelson. The decision to set the ownership threshold at 15% follows an intensive lobbying campaign by newspaper industry executives concerned that a permanent outright ban could cut off a vital source of funding to an already-embattled industry. RedBird Capital, the US-based fund, has already said it is exploring the possibility of taking full control of the Telegraph, while IMI would have - if the status quo had been maintained - been forced to relinquish any involvement in the right-leaning broadsheets. Other than RedBird, a number of suitors for the Telegraph have expressed interest but struggled to raise the funding for a deal. The most notable of these has been Dovid Efune, owner of The New York Sun, who has been trying for months to raise the £550m sought by RedBird IMI to recoup its outlay. On Sunday, the Financial Times reported that Mr Efune has secured backing from Jeremy Hosking, the prominent City investor. Another potential offer from Todd Boehly, the Chelsea Football Club co-owner, and media tycoon David Montgomery, has failed to materialise. RedBird IMI paid £600m in 2023 to acquire a call option that was intended to convert into ownership of the Telegraph newspapers and The Spectator magazine. That objective was thwarted by a change in media ownership laws - which banned any form of foreign state ownership - amid an outcry from parliamentarians. The Spectator was then sold last year for £100m to Sir Paul Marshall, the hedge fund billionaire, who has installed Lord Gove, the former cabinet minister, as its editor. The UAE-based IMI, which is controlled by the UAE's deputy prime minister and ultimate owner of Manchester City Football Club, Sheikh Mansour bin Zayed Al Nahyan, extended a further £600m to the Barclays to pay off a loan owed to Lloyds Banking Group, with the balance secured against other family-controlled assets. Other bidders for the Telegraph had included Lord Saatchi, the former advertising mogul, who offered £350m, while Lord Rothermere, the Daily Mail proprietor, pulled out of the bidding for control of his rival's titles last summer amid concerns that he would be blocked on competition grounds. The Telegraph's ownership had been left in limbo by a decision taken by Lloyds Banking Group, the principal lender to the Barclay family, to force some of the newspapers' related corporate entities into a form of insolvency proceedings.
