RedBird Capital acquires The Telegraph, ending two-year sale saga

CNN
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RedBird Capital Partners announced on Friday that it has purchased Telegraph Media Group for £500 million (nearly $675 million), concluding a protracted bid to acquire the news company.

The deal makes US-based RedBird the sole controlling owner of The Telegraph, the right-leaning British news outlet founded in 1855. Per the deal, RedBird will invest funds in The Telegraph’s digital operations to help continue growing subscriptions and expand the outlet’s foothold in the United States, where RedBird already has a constellation of media investments.

The deal comes after RedBird struggled for two years to acquire The Telegraph, stymied in large part by a conservative British government that restricted foreign governments from owning newspapers and capped foreign state-owned investment by a publisher at 15%. The UK’s Labour Party, which swept into power in July 2024, announced last week that it would relax restrictions on foreign investment.

“This transaction marks the start of a new era for The Telegraph as we look to grow the brand in the UK and internationally, invest in its technology and expand its subscriber base,” RedBird CEO Gerry Cardinale said in a statement.

In January 2024, Jeff Zucker, the former CNN president, flew to London to pitch a takeover of the media company to Ofcom on behalf of RedBird IMI, where he is the chief executive.

The Telegraph went up for sale in 2023 after Lloyds Banking Group took control of unpaid debts from the Barclay family, which acquired the newspaper in 2004. The Barclay family regained control of the Telegraph in December 2023 with the help of a loan from RedBird IMI, an Abu Dhabi-backed joint venture. However, the British government blocked the transfer of ownership to RedBird.

The Friday deal avoided that rule by providing IMI only a minority share in the paper.

RedBird’s focus on the US market comes as other British media outlets, including the BBC, The Guardian, and The Independent, have expanded their US coverage, often to great success. According to a May report, The Guardian grew its overall revenue by 25% on year, while The Independent in January reported a 75% year-over-year audience increase.

RedBird has major investments in media, entertainment, and sports in the UK. In 2024, the firm acquired All3Media, a British film and TV production and distribution company. The company also has a stake in the Premier League soccer club Liverpool and owns AC Milan in Italy’s Serie A. RedBird will also acquire the UK’s Channel 5 if Paramount Global’s merger with Skydance is approved.

RedBird has also invested in Ben Affleck and Matt Damon’s Artists Equity, LeBron James and Maverick Carter’s SpringHill Company, the YES Network, and has helped Skydance finance several productions, including Amazon’s “Reacher” and Paramount’s “Top Gun: Maverick.”