RedBird Capital Completes Historic $675 Million Acquisition of The Telegraph

RedBird Capital Completes Historic $675 Million Acquisition of The Telegraph

RedBird Capital Partners has announced a significant milestone in the media landscape by securing a $675 million deal to acquire Britain’s esteemed Telegraph newspaper. This acquisition marks the largest investment in UK print media in the past decade and positions RedBird, established in 2014 by investor Gerry Cardinale, as the majority owner of the 170-year-old conservative broadsheet, often referred to colloquially as the Torygraph.

As part of this agreement, International Media Investments (IMI), linked to Abu Dhabi’s Sheikh Mansour bin Zayed Al Nahyan, will acquire a minority stake in the Telegraph, pending court approval. RedBird has indicated that it is actively engaging with UK-based minority investors who possess media experience and a robust commitment to the editorial standards of The Telegraph to further enhance the newspaper’s credibility and market presence.

• Among the potential investors is the owner of the UK’s Daily Mail, who is exploring a nearly 10% stake in the venture.
• Cardinale’s portfolio includes various media interests, such as Skydance Media, currently awaiting regulatory approval for an $8 billion merger with Paramount Global.

The acquisition journey for the Telegraph has been anything but conventional. Initially, RedBird entered a joint venture with IMI to acquire both the Telegraph and its sister publication, the Spectator, in 2023. However, this move was thwarted by the British government due to concerns regarding foreign ownership of UK media, resulting in parliamentary protests over the potential consequences of IMI holding a controlling stake.

Consequently, the joint venture, known as RedBird IMI, retained operational control of the Telegraph while actively pursuing alternative bids. Amidst this backdrop, Dovid Efune, the British-born owner of the New York Sun, emerged as a candidate for the acquisition, but he faced hurdles in securing the necessary financing prior to a critical deadline.

In a related development, the RedBird IMI consortium sold the Spectator for approximately $135 million to Paul Marshall, a British hedge fund manager known for his ownership of media outlets such as GB News and UnHerd.

Recently, the British government announced legal reforms permitting foreign entities to hold stakes of up to 15% in UK newspapers, a change that has paved the way for the current RedBird and IMI acquisition.

RedBird’s investment strategy extends beyond traditional print media. The firm is involved with Fenway Sports Group, owners of the Boston Red Sox and Liverpool FC, the New York Yankees’ sports network, as well as All3Media, the largest independent TV and film production company in the UK.

In an increasingly competitive market characterized by right-leaning publications, The Telegraph faces rivals such as The Times of London, owned by Rupert Murdoch’s News Corp. RedBird has expressed intentions to bolster The Telegraph’s digital initiatives and pursue international brand expansion, particularly within the United States.