U.S. private equity firm RedBird Capital Partners said Friday that it has reached an in-principle agreement to acquire The Telegraph Media Group at a total enterprise valuation of £500 million ($673 million) to become the U.K. media company’s sole controlling owner. “It is the largest investment in U.K. print media in a decade and unlocks a new era of growth for the 170-year-old title,” the companies said.
The ownership of the conservative newspaper and its related offerings has been in question after the Abu Dhabi-backed RedBird IMI agreed to buy The Telegraph and the Spectator magazine in 2023, with the U.K. government then cracking down on foreign state investment in British newspapers, forcing a sale.
The Telegraph wrote that RedBird Capital, which provided part of RedBird IMI’s funding for the original deal, was expected to be joined in the new ownership consortium by British media investors.
“RedBird is in discussions with select U.K.-based minority investors with print media expertise and strong commitment to upholding the editorial values of The Telegraph,” the deal announcement noted. Abu Dhabi’s International Media Investments (IMI) “will also participate in the acquisition as a minority investor, subject to the passage of secondary legislation regarding foreign ownership thresholds,” it highlighted.
RedBird said its growth strategy includes “capital investment in the group’s digital operations to continue driving subscriptions, using best-in-class data analytics and artificial intelligence tools to expand the value proposition to its core subscriber base and potential new subscribers.”
RedBird also said it has “ambitious growth plans that focus on investing in top journalistic talent, from award-winning reporters to opinion-leading commentators.”
A key part of RedBird’s strategy is expanding The Telegraph’s global reach, particularly in the United States, “leveraging the title’s iconic brand and authoritative reporting to drive new audiences seeking world-class independent journalism. Collaboration across RedBird’s portfolio will create unique partnership opportunities, blending tradition with innovation to expand The Telegraph’s position as a global leader in quality journalism.”
RedBird also said it would “build on the strong financial foundations established by the current management team” and work with it to grow the brand internationally, with a focus on the U.S. where RedBird has a strong strategic presence across news, media and sports.
“Together, RedBird and TMG senior leadership will work to develop new content verticals in areas such as travel and events to maximize the commercial opportunities from a growing international and mass affluent subscriber base,” the companies said.
With this latest transaction, RedBird said it “has emerged as one of the largest investors in U.K. media, sports and entertainment, with a portfolio including Premier League Champion Liverpool FC; All3Media, the U.K.’s largest independent television, film and digital production and distribution company; Fulwell Entertainment, one of the U.K.’s leading television, film and music production companies; Build a Rocket Boy, one of the U.K.’s largest independent video gaming and entertainment studios; and the pending acquisition of the U.K.’s Channel 5 as a result of Skydance Entertainment’s merger with Paramount Global.”
Said Gerry Cardinale, founder and managing partner of RedBird: “This transaction marks the start of a new era for The Telegraph as we look to grow the brand in the U.K. and internationally, invest in its technology, and expand its subscriber base. We believe that the U.K. 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 U.K.”
Added Anna Jones, CEO of Telegraph Media Group: “Telegraph Media Group is an award-winning news media organization, with exceptional journalism at its heart, supported by leading commercial expertise, a commitment to innovation and a laser focus on data to drive strategy.” She added that RedBird Capital Partners has “exciting growth plans that build on our success – and will unlock our full potential across the breadth of our business.”
