Daily Mail Owner Strikes $650 Million Deal to Acquire the Telegraph

The DMGT group, owner of the Daily Mail, announced on Saturday that it has finalized a deal worth £500 million (approximately $650 million) to acquire its rival, the Telegraph. This acquisition would create one of the most influential conservative media groups in the UK, according to CNN's website.

The agreement comes a week after American fund RedBird Capital Partners withdrew its bid to purchase the Telegraph, one of the largest British newspapers.

In 2023, a RedBird-IMI joint venture had acquired the Telegraph Media Group as well as The Spectator magazine. However, the then British government intervened to ban any foreign state investment in the UK press. RedBird sought formal approval from the authorities to proceed with the acquisition under a new structure, in which IMI - backed by Abu Dhabi - would participate as a minority investor, limited to 15%.

According to a source close to the matter, the regulatory approval process was progressing more slowly than anticipated, casting doubts on the timeline and feasibility of the project. The persistent opposition from senior editorial staff at the Telegraph also contributed to RedBird's withdrawal.

According to the Financial Times, which first reported the agreement, the £500 million price is intended to reimburse amounts already committed by the consortium led by RedBird.

The parties have now entered an exclusivity period to finalize the terms of the transaction and prepare regulatory steps, which DMGT hopes will be expedited. The deal would comply with British rules on foreign influence, as no foreign state would participate in the funding.

DMGT had previously expressed interest in the Telegraph Media Group in 2023. According to Sky News, the group was in discussions this year to acquire a 9.9% stake in the Telegraph titles.

DMGT's media portfolio also includes The Mail on Sunday, Metro, The i Paper, and New Scientist. The Daily Telegraph would maintain its editorial independence within the group.

A spokesperson for RedBird IMI stated: "DMGT and RedBird IMI worked swiftly to reach the agreement announced today, which will soon be submitted to the Secretary of State."

The Telegraph has not immediately responded to Reuters' request for comment.

Source: CNN