Daily Mail owner DMGT has reached an agreement to buy rival newspapers, The Telegraph and the Sunday Telegraph, keeping the iconic newspaper in the nation. The £500 million ($650 million) acquisition is set to create one of the most powerful right leaning media groups in the UK. Last week, American investment management firm Red Bird Capital Partners decided not to bid for The Telegraph which is one of the biggest newspapers in Britain. The deal has to be signed by the British Culture Secretary.
In 2023, a joint venture by RedBird-IMI had acquired the Telegraph Media Group and Spectator magazine. However, the UK government intervened and banned foreign state investments in UK newspapers. Red Bird sought approval from the government for the acquisition with a revised structure, including Abu Dhabi back IMI as a minor investor with a 15% cap.
Many senior employees from the Telegraph opposed the deal, and regulatory clearance was also slowed down. So, the joint venture finally gave up its bid and began negotiations for a deal with DMGT.
The DMGT chairman, Lord Rothemere said that he had been an admirer of The Telegraph from a long time and the deal would be beneficial to its employees.
He also described it as “Britain’s largest and best quality broadsheet newspaper” and mentioned its history and its “role in shaping Britain’s national debate” through the decades.
The chairman also that the group would make substantial investment in the Daily Telegraph to expand its international reach. It would focus on the USA where the Daily Mail has already successfully established both editorial and commercial operations.
DMGT’s portfolio of media organizations include the ipaper, Metro and New Scientist. It also includes the Daily Mail and Mail on Sunday. The group has said that the Telegraph will maintain its editorial independence.
A spokesman for RedBird IMI said that they had worked with DMGT to reach a successful agreement and that they would submit it “to the Secretary of State.”
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