RedBird Capital Withdraws £500m Bid for Telegraph Media Group Amid Internal Opposition
RedBird Capital Partners has withdrawn its £500 million bid to acquire Telegraph Media Group, which includes the Daily and Sunday Telegraph titles. The bid was part of a consortium led by RedBird that included the UAE-based IMI Group, owned by the Abu Dhabi royal family, which would have received a 15% stake in the company.
This move comes after more than two years of uncertainty over the Telegraph's ownership, following lenders seizing control from the Barclay family. The RedBird–IMI consortium had paid off the Barclays' debts with the intention of eventually owning the titles. A revised financing package, negotiated with support from Lord Rothermere and Sir Leonard Blavatnik, also allowed IMI to hold a 15% stake.
A law change in 2025 permitted foreign sovereign wealth funds to hold up to 15% in newspapers, and the bid complied with this. It was due to be considered under a regulatory review.
RedBird's withdrawal was confirmed by a spokesman stating the firm is now seeking a solution that serves the best interests of Telegraph employees and readers. According to sources close to RedBird, the bid likely would have passed regulatory scrutiny. However, persistent negative coverage from within the Telegraph newsroom contributed to the decision to abandon the deal.
Unrest within the Telegraph newsroom was cited as a key factor in RedBird's decision. The RedBird chief, Gerry Cardinale, who also owns AC Milan, had expressed a strong desire to own the titles and expand the Telegraph's reach, particularly aiming to grow its US subscriber base by addressing a market opportunity.
The collapse of this deal makes another auction of the Telegraph titles likely in the coming year.
