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Yahoo
2 days ago
- Business
- Yahoo
RedBird Strikes Deal to Acquire U.K.'s Telegraph Media Group, Vows to Invest in Digital, Journalists
U.S. private equity firm RedBird Capital Partners said Friday that it has reached an in-principle agreement to acquire The Telegraph Media Group at a total enterprise valuation of £500 million ($673 million) to become the U.K. media company's sole controlling owner. 'It is the largest investment in U.K. print media in a decade and unlocks a new era of growth for the 170-year-old title,' the companies said. The ownership of the conservative newspaper and its related offerings has been in question after the Abu Dhabi-backed RedBird IMI agreed to buy The Telegraph and the Spectator magazine in 2023, with the U.K. government then cracking down on foreign state investment in British newspapers, forcing a sale. More from The Hollywood Reporter Vicky Krieps, Christian Friedel Join 'The Idiots' German Director Christian Petzold Named President of Austria's Viennale Prince William Launches 'Guardians' Docuseries on Rangers on BBC Earth Digital Platforms The Telegraph wrote that RedBird Capital, which provided part of RedBird IMI's funding for the original deal, was expected to be joined in the new ownership consortium by British media investors. 'RedBird is in discussions with select U.K.-based minority investors with print media expertise and strong commitment to upholding the editorial values of The Telegraph,' the deal announcement noted. Abu Dhabi's International Media Investments (IMI) 'will also participate in the acquisition as a minority investor, subject to the passage of secondary legislation regarding foreign ownership thresholds,' it highlighted. RedBird said its growth strategy includes 'capital investment in the group's digital operations to continue driving subscriptions, using best-in-class data analytics and artificial intelligence tools to expand the value proposition to its core subscriber base and potential new subscribers.' RedBird also said it has 'ambitious growth plans that focus on investing in top journalistic talent, from award-winning reporters to opinion-leading commentators.' A key part of RedBird's strategy is expanding The Telegraph's global reach, particularly in the United States, 'leveraging the title's iconic brand and authoritative reporting to drive new audiences seeking world-class independent journalism. Collaboration across RedBird's portfolio will create unique partnership opportunities, blending tradition with innovation to expand The Telegraph's position as a global leader in quality journalism.' RedBird also said it would 'build on the strong financial foundations established by the current management team' and work with it to grow the brand internationally, with a focus on the U.S. where RedBird has a strong strategic presence across news, media and sports. 'Together, RedBird and TMG senior leadership will work to develop new content verticals in areas such as travel and events to maximize the commercial opportunities from a growing international and mass affluent subscriber base,' the companies said. With this latest transaction, RedBird said it 'has emerged as one of the largest investors in U.K. media, sports and entertainment, with a portfolio including Premier League Champion Liverpool FC; All3Media, the U.K.'s largest independent television, film and digital production and distribution company; Fulwell Entertainment, one of the U.K.'s leading television, film and music production companies; Build a Rocket Boy, one of the U.K.'s largest independent video gaming and entertainment studios; and the pending acquisition of the U.K.'s Channel 5 as a result of Skydance Entertainment's merger with Paramount Global.'Said Gerry Cardinale, founder and managing partner of RedBird: 'This transaction marks the start of a new era for The Telegraph as we look to grow the brand in the U.K. and internationally, invest in its technology, and expand its subscriber base. We believe that the U.K. 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.' Added Anna Jones, CEO of Telegraph Media Group: 'Telegraph Media Group is an award-winning news media organization, with exceptional journalism at its heart, supported by leading commercial expertise, a commitment to innovation and a laser focus on data to drive strategy.' She added that RedBird Capital Partners has 'exciting growth plans that build on our success – and will unlock our full potential across the breadth of our business.' Best of The Hollywood Reporter How the Warner Brothers Got Their Film Business Started Meet the World Builders: Hollywood's Top Physical Production Executives of 2023 Men in Blazers, Hollywood's Favorite Soccer Podcast, Aims for a Global Empire Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
Former cabinet minister Zahawi pulls out of ‘British bid' for The Telegraph
The former Conservative cabinet minister Nadhim Zahawi has pulled out of the 'British bid' for The Telegraph led by the publisher Dovid Efune. The decision on Saturday leaves Mr Efune with an even steeper challenge as he attempts to gatecrash the planned takeover by the US private equity firm RedBird Capital. Mr Zahawi, his family and friends accounted for £60m of the £170m of equity it is understood had been committed to the bid. Even before losing the support, the consortium may have needed to raise a further £200m from shareholders to deliver the £550m bid he made alongside Mr Zahawi and the hedge fund manager Jeremy Hosking. Mr Efune has planned to complete the offer with borrowing against The Telegraph's profits. The approach has been rejected by IMI, a media company owned by the United Arab Emirates. It is selling The Telegraph after its own attempt to take control was blocked last year following an outcry over press freedom. That bid was made by a joint venture, RedBird IMI, in which RedBird was the junior partner having provided 25pc of the funding. Now the US private equity firm led by its founder Gerry Cardinale is in line to become the controlling shareholder in The Telegraph in a £500m deal. He has signalled ambitious growth and investment plans to deliver a 'global counterpunch to The New York Times' from the centre-Right of the political spectrum. Mr Cardinale is also in talks with at least three potential British minority co-investors, who include the owner of The Daily Mail, Lord Rothermere. After a proposed easing of the outright ban on foreign state shareholdings in newspapers, IMI is expected to retain a passive stake of up to 15pc. With longstanding business and political links to the UAE, it is understood that Mr Zahawi pulled out after becoming concerned at Mr Efune's handling of the bid. In recent days the publisher of the New York Sun website has sought to cast his approach as more British than RedBird's and sought to cast doubt on its sources of funding and ability to run The Telegraph successfully. IMI has come out in public support of Mr Cardinale's bid, however, and it has been unclear how Mr Efune expects to disrupt their agreement in principle. Mr Cardinale has said none of RedBird's funding for the deal is drawn from sovereign wealth. Mr Zahawi, who was Covid vaccines minister and briefly Chancellor, has played a significant role in the two-year saga over the ownership of The Telegraph. A friend of both the Barclay family, the previous owners, and senior figures in the UAE, he was part of setting up a complex debt repayment deal that was intended to deliver the company into the hands of RedBird IMI. It included a £600m linked to the Barclay family's online shopping business Very, which saw Mr Zahawi become chairman. Despite the failure of RedBird IMI's takeover of The Telegraph, he has persistently sought a role in its future. In recent months he has sought to put together a new bid that would help the UAE recoup its outlay. It is understood Mr Cardinale does not intend to involve Mr Zahawi. Mr Efune was unavailable for comment. In his most recent statements on the bid he said was confident he would be able to announce more investors soon. Mr Zahawi declined to comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
Yahoo
24-05-2025
- Business
- Yahoo
Telegraph to be sold to RedBird Capital
The Telegraph is to be sold to a transatlantic consortium led by RedBird Capital Partners under a preliminary deal to end two years of gruelling uncertainty and deliver significant investment in journalism. Gerry Cardinale, the founder of the US private equity firm, has signed an agreement in principle to acquire control of The Telegraph for £500m from RedBird IMI, an investment vehicle majority backed by the United Arab Emirates. RedBird IMI was blocked by the Government from taking full ownership last year following a parliamentary outcry over press freedom. Now, RedBird Capital, which provided a quarter of RedBird IMI's funding, is moving to take direct control of the publication and is expected to be joined in the ownership group by British media investors. They have an ambitious plan to accelerate The Telegraph's growth at home and abroad. No final agreements are in place, however. A rival is attempting to disrupt the sale too, and regulatory hurdles await. The Telegraph, which will mark the 170th anniversary of its first edition next month, has effectively been without a proprietor for two years. Mr Cardinale said: '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. 'We believe 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.' In recent years The Telegraph has been navigating the decline of printed newspapers by investing in building its base of paying digital subscribers. Initial rapid growth slowed after 2021 when its previous owners, the Barclay family, got into financial difficulties and applied a squeeze to extract cash. RedBird Capital is expected to allow The Telegraph to reinvest more of its profits, which at the operating level were more than £54m last year. Mr Cardinale aims for the brand to become a force in US and global journalism, targeting an intelligent centre-Right readership which is not currently well-served. He also aims to expand The Telegraph's successful travel offering and build an events business. Chris Evans, the editor of The Telegraph, said: 'The Telegraph has made enormous progress in recent years since the launch of its digital subscription strategy, thanks to the hard work of its brilliant staff and valued support of its readers. 'But there is much more that can be achieved. With the right plan and the right investment by ambitious new owners, this venerable title can look forward to an era of unprecedented success.' Anna Jones, chief executive of Telegraph Media Group, said the company had 'exceptional journalism at its heart'. She added: 'RedBird Capital Partners have exciting growth plans that build on our success – and will unlock our full potential across the breadth of our business.' As he works to complete the consortium, Mr Cardinale, 58, is understood to be in detailed talks with the owner of The Daily Mail, Lord Rothermere. In 2023 Lord Rothermere lined up to bid for control of The Telegraph in an abortive auction, but is now said to be discussing taking a stake just shy of 10pc. Sources close to the talks said a deal would position both titles to capture savings by sharing certain costs while seeking to stay within competition and media plurality rules. Lord Rothermere's company DMGT already sells print advertising space in The Telegraph and is involved in its printing. More minority investors are expected to be named in the coming weeks before a final deal is submitted to regulators. Sources said Mr Cardinale had lined up more backers among his British contacts in sport and media investing. The former Goldman Sachs banker has emerged as a significant dealmaker in football in recent years, with RedBird Capital the owner of AC Milan and a shareholder in Fenway Sports, the group behind Liverpool FC. Mr Cardinale is also poised to become a bigger player in Hollywood as a backer of the $12bn takeover of the producer and broadcaster Paramount, which owns Channel 5 in the UK. IMI, the UAE's media investment vehicle, is expected to retain a stake in The Telegraph of up to 15pc as part of the plans. Under proposals by Lisa Nandy, the Culture Secretary, an outright ban on foreign states owning shares in newspapers, which blocked RedBird IMI's attempted takeover, is to be relaxed. The move follows lobbying by Lord Rothermere and Rupert Murdoch. They argued that earlier plans for a more stringent 5pc limit on foreign state investment would cut the news industry off from an important potential source of capital at a time of dizzying change. The 15pc limit has split the Conservatives, who were in power when the RedBird IMI deal was blocked. The party's leadership has said it will support the higher figure but Julia Lopez, the media minister at the time of the original ban, branded Labour's decision a 'sell-out'. Lord Forsyth of Drumlean has said he will back a Liberal Democrat 'fatal motion' to obstruct the legislation and declared foreign state shareholdings a 'systemic threat to a free press'. He claimed the Government had yielded to diplomatic pressure after the UAE took offence at the decision to block RedBird IMI's attempted takeover of The Telegraph. Under the planned laws, the UAE will be barred from involvement in the running of The Telegraph as a purely passive shareholder. The Culture Secretary will have a duty to trigger an investigation of potential breaches and powers to force the country to exit its investment if it is found to have exercised influence. Mr Cardinale's agreement in principle with IMI, which is ultimately controlled by Sheikh Mansour bin Zayed Al Nahyan, the deputy prime minister of the UAE, is expected to call time on a protracted parallel sale process overseen by the investment bank Robey Warshaw. An IMI spokesman said: 'We're delighted with this announcement and know that The Telegraph has a bright future under the control of Gerry Cardinale and RedBird Capital. 'This will end the uncertainty that has been facing The Telegraph, secure its future and enable it to thrive and grow for years to come.' Lord Fox, the Liberal Democrat peer behind the fatal motion against a 15pc limit, warned that the announcment of agreement between RedBird Capital and IMI before the law is finalised 'puts the cart before the horse'. He said: 'We don't believe in letting overseas states buy their way in to influencing the news we read. We'll move to block the law as soon as it reaches the Lords - and can win the vote if the Conservatives do the right thing and stand with us. 'The new permissions for foreign ownership of newspapers simply don't exist yet, and there's many lawmakers who don't believe they should.' Robey Warshaw ran a sale process last year that was eventually nicknamed 'the newspaper auction from hell'. It was the second in the saga since the Barclay family lost control of The Telegraph in early June 2023 following a dispute with Lloyds Banking Group over £1.2bn of overdue debt. Dovid Efune, the publisher of The New York Sun, emerged as the winning bidder under the Robey Warshaw process last October, but subsequently struggled to raise the necessary funds. He has persisted in what some bankers and media executives view as a quixotic quest to finance his offer, however, and last weekend made a surprise return to the fray. Mr Efune's latest bid includes support from the former cabinet minister Nadhim Zahawi, who is well-connected in the UAE and was involved in the original deal between the Barclay family and RedBird IMI, and hedge fund chief Jeremy Hosking, who is the main donor to the Right-wing populist Reclaim party led by the controversial actor Laurence Fox. The Efune consortium are pitching their gate-crashing attempt as a 'British bid' in contrast with RedBird Capital's more international outlook. Sources close to the process said Mr Efune's fundraising was still not complete and that the bid included a level of debt that would be difficult to support, although he remains in discussions to sign up more supporters. Mr Cardinale's consortium is expected to rely on debt of little over £100m, or around two years' of The Telegraph's underlying profits. The current level of borrowing is around £60m. In recent days the two men have both been meeting influential figures in London to drum up support as the battle over The Telegraph seemingly reaches its climax. In one potentially comic scene, Mr Cardinale and Mr Efune this week ran into each other in Parliament as they met different peers interested in the issues. While Mr Cardinale appears favourite to prevail, there remain hurdles to completing a deal. Following RedBird Capital's announcement, in a post on X Mr Efune said: 'While a deal with RedBird Capital was announced this morning, it's clear that this bid yet has significant hurdles to overcome. 'Since The Telegraph first came on the market I've dedicated much time and resources to finding a solution. 'It's been a turbulent undertaking and has faced unwelcome interference along the way. I'm pleased to say, though, that we are now within sight of the finish line, with the bulk of the needed funding committed. '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.' Mr Efune may review legal options over the Government's handling of the lengthy process, for instance. Meanwhile regulators are likely to closely scrutinise all members of the RedBird Capital consortium and their sources of funding. Mr Cardinale is also yet to secure final commitments from his planned co-investors. The likely involvement of a rival newspaper publisher in DMGT will also pose questions about competition and media plurality that could further complicate and lengthen the path. A full investigation by the Competition and Markets Authority could take 24 weeks, although Ms Nandy has discretion to opt for a quicker process. Mr Cardinale has already met senior commercial and editorial executives at The Telegraph to build relationships and discuss business plans, including utilising RedBird Capital's technology experts. He said: 'Having now spent time with Chris Evans, Anna Jones and the entire senior management team at The Telegraph, we have tremendous conviction in the growth potential of this incredibly important cultural institution.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Business Mayor
23-05-2025
- Business
- Business Mayor
Gerry Cardinale's RedBird to buy Telegraph newspaper in £500mn deal
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. RedBird Capital Partners has agreed to buy the Telegraph Media Group in a £500mn deal, signalling an end to one of the most protracted and tortuous sales of a British newspaper in recent history. RedBird said the deal would make it the sole controlling owner, leaving Abu Dhabi's IMI with a minority stake, after the British government changed the law to stop the newspaper from becoming owned by a foreign state-backed fund. The process to sell the Telegraph was kicked off two years ago when Lloyds Banking Group seized control from the Barclay family, which had owned the business since 2004, because of unpaid debts. A deal struck to buy the Telegraph Media Group by RedBird IMI, a separate joint venture with three-quarters of its funding from Abu Dhabi, for about £550mn was then blocked by the former Conservative government. Backbenchers worried about giving a foreign state control of an influential British newspaper had lobbied against that deal. The UK government last week confirmed plans to cap foreign state ownership of British national newspapers at 15 per cent, with IMI expected to take the full allotment open to the Abu Dhabi-backed group. Redbird is still in talks with a number of UK-based investors to join a consortium, including Lord Rothermere's DMGT, which owns the Daily Mail and could take about 10 per cent, according to people familiar with the matter. RedBird is expected to use about £100mn in debt finance, giving the deal an enterprise value of £500mn. It wants to invest in the group's digital operations to drive subscriptions, and bring in greater use of artificial intelligence tools. RedBird also wants to grow the brand internationally, with a focus on the US, where it envisages potential tie-ups with its roster of media and sports assets. Gerry Cardinale, founder and managing partner of RedBird, said: '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.' Cardinale said he would work with the UK government and regulators to complete the acquisition process, which will face scrutiny under public interest, competition and media plurality rules. The deal is also likely to face criticism from politicians in the UK, some of whom have been vocally opposed to foreign states owning any stakes in British national newspapers. For the deal to proceed, the government will also need to lift the block imposed at the end of 2023 that in effect prevented the debt acquired by RedBird IMI from being converted into equity ownership. The Financial Times first reported the new bid to take control of the newspaper by Cardinale and the involvement of Rothermere. The group has become one of the largest investors in UK media, sports and entertainment, partly through its close links with Abu Dhabi in RedBird IMI. Last year, RedBird IMI acquired All3Media, the UK's largest independent TV production company and RedBird itself separately owns a stake in Premier League club Liverpool, and will also have control of the UK's Channel 5 if Skydance's merger with Paramount Global is cleared by regulators in the US.
Yahoo
23-05-2025
- Business
- Yahoo
Private equity firm buys The Telegraph, ending two-year sale saga
RedBird Capital Partners announced on Friday that it has purchased Telegraph Media Group for £500 million (nearly $675 million), concluding a protracted bid to acquire the news company. The deal makes US-based RedBird the sole controlling owner of The Telegraph, the right-leaning British news outlet founded in 1855. Per the deal, RedBird will invest funds in The Telegraph's digital operations to help continue growing subscriptions and expand the outlet's foothold in the United States, where RedBird already has a constellation of media investments. The deal comes after RedBird struggled for two years to acquire The Telegraph, stymied in large part by a conservative British government that restricted foreign governments from owning newspapers and capped foreign state-owned investment by a publisher at 15%. The UK's Labour Party, which swept into power in July 2024, announced last week that it would relax restrictions on foreign investment. '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,' RedBird CEO Gerry Cardinale said in a statement. In January 2024, Jeff Zucker, the former CNN president, flew to London to pitch a takeover of the media company to Ofcom on behalf of RedBird IMI, where he is the chief executive. The Telegraph went up for sale in 2023 after Lloyds Banking Group took control of unpaid debts from the Barclay family, which acquired the newspaper in 2004. The Barclay family regained control of the Telegraph in December 2023 with the help of a loan from RedBird IMI, an Abu Dhabi-backed joint venture. However, the British government blocked the transfer of ownership to RedBird. The Friday deal avoided that rule by providing IMI only a minority share in the paper. RedBird's focus on the US market comes as other British media outlets, including the BBC, The Guardian, and The Independent, have expanded their US coverage, often to great success. According to a May report, The Guardian grew its overall revenue by 25% on year, while The Independent in January reported a 75% year-over-year audience increase. RedBird has major investments in media, entertainment, and sports in the UK. In 2024, the firm acquired All3Media, a British film and TV production and distribution company. The company also has a stake in the Premier League soccer club Liverpool and owns AC Milan in Italy's Serie A. RedBird will also acquire the UK's Channel 5 if Paramount Global's merger with Skydance is approved. RedBird has also invested in Ben Affleck and Matt Damon's Artists Equity, LeBron James and Maverick Carter's SpringHill Company, the YES Network, and has helped Skydance finance several productions, including Amazon's 'Reacher' and Paramount's 'Top Gun: Maverick.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
