Telegraph newspaper set to be sold to US firm as part of £500-million deal
The Telegraph newspaper group is to be sold to a transatlantic consortium led by RedBird Capital Partners under a preliminary deal, the paper announced on Friday 23 May.
Gerry Cardinale, the founder of the US private equity firm, has signed an agreement in principle to acquire control of The Telegraph for £500 million from RedBird IMI, an investment vehicle majority backed by the United Arab Emirates, the paper said.
The sale of the 170-year old Telegraph has come under public scrutiny, with the government moving to block the deal over concerns it will impact press freedom in the UK.
Specific concerns were raised around the involvement of IMI’s owner Sheikh Mansour bin Zayed Al Nahyan, who is the vice president of the United Arab Emirates and owner of Manchester City football club.
“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,” the paper said.
It added that a rival bid for the newspaper is attempting to disrupt the sale too, and the deal will still be subject to regulatory confirmation.
“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,” said Cardinale.
“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.”
