Fate of major British newspaper remains uncertain as acquisition deal falls through

US investment group RedBird Capital Partners has withdrawn its £500 million bid for the Telegraph Media Group, leaving the fate of the major British publisher unclear.

RedBird’s decision not to move ahead with the purchase of the British publication serves as a new obstacle in the outlet’s goal to grow its business in the United States as its rivals have done in North America over the last few years, as reported by Reuters.

The decision comes months after RedBird announced in May that it had reached an in-principle agreement to acquire The Telegraph Media Group for roughly $657 million. The agreement would have brought an end to the media company’s two-year journey of finding new ownership.

Under the deal, RedBird was to become the sole controlling owner of The Telegraph, a right-leaning British newspaper founded in 1855. The private equity firm was set to invest in its digital operation in a bid to expand the outlet’s foothold in the US and increase subscription numbers.

The Telegraph’s sale was long restricted by the British government’s limitations on foreign government investments in media ownership, which caps foreign state-owned investments into an outlet at 15%.

RedBird, with the help of International Media Investments (IMI) — an Abu Dhabi-based investment firm owned by a member of Abu Dhabi’s ruling family — previously had helped the Barclay family regain control of The Telegraph in December 2023. However, the British government barred the transfer of ownership.

Journalists at the British publication had raised concerns over the nature of RedBird’s ties to China as well as the level of influence imposed by the UAE government on IMI.  A source close to the US firm told Reuters that sustained opposition from senior figures within the Telegraph newsroom had forced it to stop the acquisition negotiations.

Following the backing out of the deal, the media empire’s future returns to a state of uncertainty. “Our immediate priority is to minimise disruption to the business and work with all stakeholders, including DCMS, towards a solution,” a spokesperson for Telegraph Media Group Holdings commented on the development.

By Nazrin Sadigova