The Telegraph, a right-wing British news organization that was established in 1855, is now owned by RedBird Capital Partners, a US-based company.
After a lengthy bidding process, it was recently revealed that the US RB acquired Telegraph Media Group for £500 million, or around $675 million.
According to the agreement, RedBird, which already has a number of media ventures in the US, will provide money to The Telegraph’s digital operations in order to support the growth of subscriptions and increase the outlet’s presence in the US.
The agreement follows RedBird’s two-year battle to buy The Telegraph, which was mostly thwarted by a conservative British government that prohibited foreign governments from holding newspapers and set a 15% restriction on foreign state-owned publisher involvement.
Recently, the Labour Party of the United Kingdom, which came to power in July 2024, said that it will loosen limitations on international investment.
In a statement, RedBird CEO Gerry Cardinale stated, “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.”
Former CNN President Jeff Zucker came to London in January 2024 to present Ofcom with a takeover proposal for RedBird IMI, where he serves as CEO.
The Telegraph was put up for sale in 2023 after the Barclay family, who had purchased the newspaper in 2004, had its outstanding debts taken over by Lloyds Banking Group.
With the aid of a loan from RedBird IMI, a joint venture supported by Abu Dhabi, the Barclay family was able to retake ownership of the Telegraph in December 2023.
The British government, however, prevented RedBird from acquiring the business.
The agreement gave IMI a minority stake in the publication, avoiding that regulation.
RedBird is concentrating on the US market at a time when other British media companies, such as the BBC, The Guardian, and The Independent, have increased their coverage of the US, often with considerable success.
The Guardian’s total income increased by 25% year over year, according to a May report, while The Independent’s readership increased by 75% year over year in January.
In the UK, RedBird has significant stakes in sports, entertainment, and media.
The corporation purchased the British film and television production and distribution company All3Media in 2024.
The business also owns AC Milan in Serie A, Italy, and a share in Liverpool, a soccer team in the Premier League.
If Paramount Global’s merger with Skydance is authorized, RedBird will also purchase Channel 5 in the UK.
