Redbird Capital Partners Acquires UK Telegraph for $675 Million

Redbird Capital Partners has finalized a $675 million deal to acquire the UK Telegraph newspaper, marking a significant milestone in a protracted acquisition saga, as announced by the U.S. private equity firm on Friday.

This acquisition represents the largest investment in UK print media in over ten years. The Telegraph—often referred to as “Torygraph”—has its roots in a conservative broadsheet established in 2014 by investor Jerry Cardinale.

As part of this agreement, Redbird will bring on board Abu Dhabi’s Sheikh Mansoor Zayed Al Nahyan as a minority stake partner, pending court approval.

According to Redbird, discussions are ongoing with potential UK-based minority investors, which reportedly includes the proprietors of the Daily Mail, as noted by the Wall Street Journal.

Cardinale’s Redbird has several media investments in its portfolio, including Skydance Media, which is currently seeking approval for an $800 million merger with Paramount Global.

The process to acquire the Telegraph faced challenges for Redbird. Initially, a joint venture with IMI was established to acquire the Telegraph along with The Spectator in 2023. However, the British government intervened, blocking the takeover amid concerns regarding foreign entities owning British media outlets.

In the meantime, the joint venture retained control of the Telegraph while exploring other bidding options. Dovid Effine, the owner of the New York Sun, was considered a strong candidate for the purchase but struggled with securing sufficient funding before the deadline last year.

During this period, Redbird sold the audience for approximately $135 million to Paul Marshall, a UK hedge fund manager known for owning other media assets like GB News and Unherd.

Recently, the UK government announced new legislative reforms that would allow foreign companies to hold up to a 15% stake in British newspapers, potentially paving the way for new deals involving Redbird and IMI.

In addition to its investment in the Telegraph, Redbird has stakes in the Fenway Sports Group, which owns the Boston Red Sox and Liverpool FC, as well as the New York Yankees’ sports network and All3Media, the UK’s biggest independent TV and film production company.

The Telegraph continues to compete with various other right-leaning British publications, such as The Times of London, which is under Rupert Murdoch’s News Corp. Redbird has expressed intentions to enhance the Telegraph’s digital operations and expand its international presence, particularly in the U.S.