Reuters — DMGT, the owner of the Daily Mail newspaper, announced on Saturday that it has reached a £500 million ($650 million) deal to acquire its rival newspaper, The Telegraph. This move will create one of the most influential centre-right media groups in the UK. The deal comes a week after the American private equity firm RedBird Capital Partners withdrew its bid to purchase The Telegraph, one of Britain’s largest newspapers. The RedBird-IMI joint venture acquired Telegraph Media Group and The Spectator magazine in 2023, but the government at the time intervened, blocking foreign state investment in British newspapers. Subsequently, RedBird sought official government approval to proceed with the acquisition under an amended structure, where Abu Dhabi-backed IMI would act as a minority investor with a stake limited to 15%. A source close to RedBird told Reuters that the process of obtaining regulatory approval took longer than expected, increasing doubts about the timeline and feasibility of the acquisition. Persistent internal opposition from key figures in the Telegraph’s newsroom prompted the consortium to withdraw from the deal. The Financial Times, which first reported the deal with DMGT, specified that the price was set at around £500 million to reimburse the funds invested by the RedBird-led consortium. The parties have entered into an exclusivity period to finalize the terms of the deal and prepare the necessary regulatory documentation, which DMGT expects to complete promptly, the company said in a statement. The statement also emphasized that the transaction will comply with the UK’s foreign state influence control regime, as the funding structure will not involve any foreign state investment or capital. DMGT had previously expressed interest in potentially acquiring Telegraph Media Group in 2023. Sky News reported in May this year that DMGT was in talks to buy a 9.9% stake in the Telegraph publications. DMGT’s media portfolio also includes The Mail on Sunday, Metro, The i Paper, and New Scientist. However, The Daily Telegraph will maintain editorial independence from the group’s other publications. A RedBird IMI spokesperson stated: “DMGT and RedBird IMI have worked swiftly to reach the agreement announced today, which will be submitted to the Secretary of State shortly.”
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