Redbird reaches deal to acquire The Telegraph for £500m

(Sharecast News) - US private equity firm RedBird Capital Partners has reached an agreement in principle to acquire The Telegraph for £500m, it was announced on Friday, ending two years of uncertainty over the future of the British newspaper. The deal, which would see RedBird become the sole controlling owner, would involve purchasing the stake currently held by RedBird IMI, a joint venture that was previously blocked from full ownership due to UK restrictions on foreign state influence in media.

It followed a prolonged saga triggered by the financial collapse of the Barclay family's ownership, and a subsequent government crackdown on foreign control of UK media assets, which derailed an earlier attempt by the UAE-backed RedBird IMI to acquire the newspaper.

Under the new structure, the UAE's International Media Investments would retain a minority stake of up to 15%, the maximum now permitted under revised UK rules.

RedBird founder Gerry Cardinale said the acquisition marked the beginning of a new era for The Telegraph, with plans to expand its digital operations, invest in AI-driven subscriber growth, and grow its presence in the US.

The company was also in talks with British media investors, including Lord Rothermere's DMGT, about taking minority stakes to reinforce domestic involvement and help navigate potential competition concerns.

It still needed to clear regulatory hurdles, including scrutiny from the Competition and Markets Authority and a public interest review by culture secretary Lisa Nandy.

A rival offer led by New York Sun publisher Dovid Efune remained on the table, but lacked confirmed funding and was broadly considered unlikely to succeed.

Telegraph Media Group executives welcomed the development, with editor Chris Evans and chief executive officer Anna Jones praising RedBird's vision and financial backing.

Reporting by Josh White for Sharecast.com.