Ousted CNN president Jeff Zucker made a comeback into the news industry on Monday by agreeing to pay $1.4 billion to restructure the bankrupt British publishing group.
Mr Zucker’s investment group, Redbird IMI, will take control of the Telegraph and Spectator publications under a deal that will repay debts owed by the Berkeley family to Lloyds Banking Group.
International Media Investments, an investment firm backed by Manchester City owner Sheikh Mansour bin Zayed Al Nahyan, will also be involved in about half of the financing, the company said.
Lloyds Banking Group acquired the British newspaper group last summer.
Redbird IMI said it intends to exercise its option to convert its debt into ownership of the newspaper group at an “early opportunity” if the deal goes ahead.
If Lloyds agrees to the proposal, the deal would end 20 years of ownership of the national newspaper by the Berkeley family.
The financier has asked a British Virgin Islands court to postpone a hearing that could have liquidated the Barclays’ last holding company until early December, according to people familiar with the matter. financial times Monday’s report.
The newspaper reported that it and its sister publication, The Spectator, are still in the process of being sold at separate auctions.
As part of the deal, Abu Dhabi-backed IMI will take on significant debt on its last remaining major business asset owned by the Berkeley family. This includes Berry Retail and Financial Services Group, the Financial Times said, citing people familiar with the discussions.
The agreement is structured as a loan of approximately $750.3 million secured by Telegraph & Spectator. IMI will provide a loan of the same amount secured by the Berkeley family’s other businesses and commercial interests.
Redbird will have the option to convert loans secured by Telegraph and Spectator into equity.
However, any transfer of ownership is subject to regulatory review.
If all goes as planned, RedBird Capital, under the leadership of RedBird IMI CEO Zucker, will assume management and operational responsibilities for the title, the company said.
“Redbird IMI is fully committed to retaining the existing editorial teams of The Telegraph and Spectator magazines and believes that the editorial independence of these titles is essential to protect their reputations and credibility. ” said a Red Bird IMI representative. Press Gazette.
“We are excited about the opportunity to support Title’s existing management team in expanding the title’s reach in the UK, US and other English-speaking countries,” the representative added.
The statement aims to allay concerns about the UAE’s influence on British newspapers. A group of Conservative MPs recently wrote to Culture Secretary Lucy Fraser and Deputy Prime Minister Oliver Dowden, urging “close scrutiny” of the deal.
in the letter First published on Bloomberg, they wrote over the weekend: “Any time significant influence over a quality national newspaper is handed to a foreign ruler it should raise concerns, but given the current geopolitical situation such arrangements need to be investigated. .”
The deal saw Lord Rothermere’s Daily Mail and General Trust, David Montgomery’s National World, German publisher Axel Springer (before its withdrawal) and GB News investor Sir Paul Marshall The move ends months of speculation over the sale to potential bidders including the company.
Berkeley brothers Sir David and Sir Frederick bought the Telegraph and Spectator titles from Conrad Black in 2004 for $1.3 billion.
Lloyds Banking Group acquired the rights from them in June.
Zucker was forced out of CNN in 2022 for failing to disclose his relationship with a co-worker, but is seeking a contract. Last month, Mr. Zucker acquired a minority stake in the online newsletter Front Office Sports.
He reportedly also had his eye on other media assets, including the Washington Post, Semaphore, Puck and Air Mail, the media company founded by former Vanity Fair editor Graydon Carter.
He has not yet announced any deals with those properties.
Mr. Zucker also recently said he would be interested in buying CNN if parent company Warner Bros. Discovery were to put the cable news network up for sale. The Post first reported the news in June.
