RedBird Capital is preparing a new bid to take full control of Telegraph Media Group, aiming to bring an end to nearly two years of ownership uncertainty at the historic UK newspaper group, according to sources cited by The Guardian.

The US private equity firm, led by founder Gerry Cardinale, is working on plans to either self-fund a takeover or form a consortium. RedBird was previously part of a joint venture with Abu Dhabi’s IMI, which took control of the Daily and Sunday Telegraph titles in late 2023 after repaying debts owed by the Barclay family to Lloyds Banking Group.

However, the UK government subsequently introduced legislation restricting foreign state ownership of newspaper assets, forcing RedBird IMI to restart the sale process. RedBird Capital is now positioning itself as the lead investor in a new structure that complies with the revised regulations. Sources close to the process said a formal deal could be tabled as early as next month.

Potential alternative suitors remain in the wings, including Lord Rothermere’s Daily Mail and General Trust (DMGT) and Chelsea FC owner Todd Boehly, although DMGT previously pulled out citing concerns over competition and regulatory hurdles. Talks have also been held with David Montgomery of National World and Dovid Efune, owner of the New York Sun, who had previously explored bids.

The UK government is still considering the precise cap on foreign ownership of news publishers, with proposals suggesting a threshold of 10% to 15% ownership.

The drawn-out saga has not impacted day-to-day publishing operations at the Telegraph but has reportedly created a sense of “paralysis and unhappiness” among staff and leadership, who have been unable to make strategic decisions under the prolonged uncertainty.

RedBird Capital, an active player in global media and sports investments, holds stakes in entities including the parent company of Liverpool FC and is currently pursuing an acquisition of Paramount’s TV and film assets.

The potential acquisition of Telegraph Media Group would mark one of the most high-profile private equity-led moves in UK media in recent years.

Source: The Guardian