Daily Mail owner to buy The Telegraph for $654m

The owner of the UK tabloid Daily Mail struck a $654 million deal with US-Emirati consortium RedBird IMI for the purchase of The Telegraph newspaper, The Daily Mail and General Trust said Saturday. "DMGT has signed an agreement with Redbird IMI over the acquisition of the Telegraph Media Group at a valuation of £500 million ($654 m)," DMGT said in a press release.

It comes a week after US investment group RedBird Capital Partners abruptly abandoned its takeover, reigniting uncertainty over the paper's future and extending a protracted sale marked by govt intervention.

DMGT, which also owns national newspapers Metro and The i Paper, said it would enter a period of exclusivity to finalise the terms of the transaction, which the parties "expect to happen quickly".

It said the deal would give "much-needed certainty and confidence" to the staff at the newspaper, whose sale has been in limbo for over two years.

The publisher said it plans to "accelerate" the Telegraph's international expansion, with a focus on the United States, and that The Daily Telegraph would remain editorially independent from the other titles.

RedBird IMI, a joint venture between RedBird Capital and Abu Dhabi's International Media Investments, had struck a deal for Telegraph Media Group (TMG) in late 2023. But previous UK Conservative govt triggered a swift resale amid concern over the potential impact on freedom of speech given Abu Dhabi's press censorship record. The Tory govt also amended merger laws to bar foreign powers from controlling UK newspapers.

Following the failed bid, the most recent deal agreed in May would've given RedBird a majority stake and IMI a 15% stake, British media reported.

But that deal also came under scrutiny from rights and freedom of expression groups over links between RedBird's chair and China's largest sovereign wealth fund. "DMGT and RedBird IMI have worked swiftly to reach the agreement announced today, which will shortly be submitted to the secretary of state," a spokesperson for Redbird IMI said.

Founded in 1855, the Telegraph was bought by twin brothers Frederick and David Barclay in 2004 for £665 million. Widely known as the "Tory bible", the daily was put up for sale in 2023 by Lloyds bank to pay off the brothers' debts, plunging the paper's future into question. DMGT was one of the bidders in the original auction for the newspaper, which also reportedly fielded competing offers from hedge fund manager Paul Marshall, who owns right-wing TV channel GB News.

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