RedBird Capital is optimistic about presenting a proposal to acquire the Daily and Sunday Telegraph in the coming months, aiming to put an end to two years of instability at the 170-year-old newspapers. The firm’s founder, Gerry Cardinale, is directly involved in crafting a strategy for the potential takeover of Telegraph Media Group.
RedBird Capital is considering both self-funding and forming a consortium for the venture. This follows the partnership with IMI, an Abu Dhabi-based company, which took control of the publishing group after settling debts owed by the previous owners, the Barclay family, to Lloyds Banking Group. However, the British government’s legislation barring foreign entities from owning newspaper assets in the UK forced the titles back on the market last year.
Ever since, RedBird IMI has been conducting an auction process through investment banks Raine and Robey Warshaw. The desired price tag of £500 million has yet to find a suitable buyer.
Sources within RedBird Capital express confidence in securing a deal soon, emphasizing the need to resolve the prolonged uncertainty surrounding the newspapers. The company has been in discussions with various UK parties interested in joining a consortium, including Lord Rothermere’s DMGT. Despite DMGT’s previous attempt to acquire the Telegraph in 2004 and their withdrawal due to concerns over competition issues and political obstacles, they remain a potential participant as part of a consortium. RedBird Capital itself has sufficient financial resources to potentially finance a solo deal.
Stakeholders IMI are interested in retaining an investment in the Telegraph, though the extent of foreign ownership permissible in UK newspapers remains undetermined, with culture secretary Lisa Nandy reportedly considering a threshold of 10-15%. The ongoing stagnation has reportedly left Telegraph staff and management feeling “paralysed and unhappy” as they are hindered from making strategic decisions.
As the cases of potential buyers unfold, other notable figures like Chelsea FC owner Todd Boehly, who is discussing a joint bid with National World’s David Montgomery, and New York Sun owner Dovid Efune, who has been seeking new backers for another bid attempt, remain in the contention. Lord Saatchi previously offered to buy the Telegraph for about £350 million but ultimately didn’t proceed.
The saga over the Telegraph’s future began when Lloyds assumed control of the media group due to the Barclay family’s unpaid debts. The family had acquired the Telegraph titles and the Spectator for £665 million in 2004, with the loans later picked up by Lloyds during the financial crisis of 2008. The Spectator has since been sold to GB News investor Paul Marshall for £100 million.
Source: https://www.theguardian.com/media/2025/apr/28/redbird-capital-confident-of-tabling-a-deal-to-take-control-of-telegraph
