Abu Dhabi’s IMI will take a minority stake in the company of no more than 15 percent.
A consortium led by US investment firm RedBird Capital Partners has agreed to buy the publisher of the United Kingdom’s 170-year-old Daily Telegraph newspaper for about $674m (500 million pounds).
Redbird said it has reached an agreement in principle to become controlling owner of the Telegraph Media Group, ending a lengthy takeover saga for the conservative-leaning newspaper on Friday.
Gerry Cardinale, founder and managing partner of RedBird, said the sale “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”.
The Telegraph group, previously owned by the UK’s Barclay family, was put up for sale two years ago to help pay off the family’s debts. It publishes the Daily and Sunday Telegraph newspapers and weekly newsmagazine The Spectator, which all are closely allied to the UK’s Conservative Party.
In 2023, there was an offer to buy the publications from RedBird IMI, a consortium backed by RedBird Capital Partners and Sheikh Mansour bin Zayed Al Nahyan, a member of Abu Dhabi’s royal family and the vice president of the United Arab Emirates.
But the consortium pulled out last year following strong opposition from the UK government, which launched legislation to block foreign state ownership of the British press.
Under the deal, Abu Dhabi’s IMI will take a minority stake of not more than 15 percent in the Telegraph as a member of the consortium. The sale must be approved by British regulators.
RedBird has investments in football team AC Milan, the parent company of Liverpool football club and film production company Skydance.
Telegraph Media Group chief executive Anna Jones said that “RedBird Capital Partners have exciting growth plans that build on our success — and will unlock our full potential across the breadth of our business.”
The Spectator was sold in September to British hedge fund investor Paul Marshall.