RedBird Capital has formally
requested UK approval for its planned acquisition of The Telegraph, marking a
key stage in the high-profile media deal.
Under a proposal valued at 500 million pounds ($667.50 million), RedBird would assume complete control of the broadsheet if authorized, with IMI, backed by Abu Dhabi, acting as a minority stakeholder. In accordance with UK laws governing foreign state-backed interests, IMI's ownership will be limited at 15%.
"This is an important step forward in the process as we look to end the uncertainty at the Telegraph,"
RedBird said in its internal statement.
"Our conviction in the potential of the Telegraph has never wavered, despite the tremendous challenges all journalism endeavours face in the wake of artificial intelligence, social media news consumption and the ongoing technological disintermediation that threatens all intellectual property based businesses."
Since IMI first purchased the conservative-leaning Telegraph and The Spectator magazine in 2023, ownership of the publication has changed. Later, when the then-government decided to forbid foreign state involvement in British publications, the agreement was broken and a sale was compelled.
Although it acknowledged receiving RedBird's request, the Department of Culture, Media, and Sport remained silent.
When RedBird Capital and IMI first sought joint control in January 2024, a Public Interest Intervention Notice was issued. The updated agreement was made possible by the present government's decision to let foreign state-owned investors own up to 15% of UK newspaper publishers.
The action came after some legislators expressed outrage about media independence and the possibility of foreign powers purchasing political influence.
Founded in 2014, RedBird oversees assets of over $12 billion worldwide. Among its stakes are Skydance Media, AC Milan, and a prospective merger with Paramount Global.
What are the key details about the acquisition?
The agreement in principle assigns
a valuation of The Telegraph Media Group at approximately £500 million ($674
million), making it the biggest investment into UK print media in more than a
decade.
RedBird, under the leadership of its founder and managing partner, Gerry Cardinale, will provide significant investment in digital capabilities, AI-enabled analytics, and global growth to the company, with particular focus on expanding the business into the U.S. market where the firm already has significant media investments.
The move follows last year's government intervention which blocked a previous ownership committee (RedBird IMI) that had been majority backed by the United Arab Emirates, on the basis of concerns over influence from foreign state actors. Under the new ownership and ownership structure, RedBird Capital will take direct control, with plans for selected minority UK based investors to invest.