Abu Dhabi-backed investment fund Redbird IMI has confirmed today that it has launched a sale of the Telegraph Media Group (TMG).
This decision followed impending UK legislation, the Digital Markets, Competition and Consumers Bill, which has been designed to effectively ban foreign state ownership of UK newspapers.
Redbird IMI is a joint venture between Redbird, led by Jeff Zucker, and International Media Investments, owned by UAE Deputy Prime Minister Sheikh Mansour bin Zayed Al Nahyan, who also owns Manchester City football club. The venture had acquired the Telegraph Media Group from the Barclay brothers.
A Redbird IMI spokesperson said: “We continue to believe this approach would have benefited the Telegraph and Spectator’s readers, their journalists and the UK media landscape more widely.
“Regrettably, it is clear this approach is no longer feasible. Our focus now is on providing certainty to the employees and readers of the Telegraph and the Spectator, and securing best value for the assets, which remain highly attractive.
“We have held constructive conversations with the Government about ensuring a smooth and orderly sale for both titles.”
It reopened the floor to previous contenders for the right-leaning papers, initially put up for sale last year after the Barclay brothers failed to repay debts. No timeline has been given yet.
Among potential bidders is billionaire hedge fund owner and founder of Unherd, Sir Paul Marshall, who led a bid for TMG last year, collaborating with investment bank Moelis and US investor Ken Griffin.
City A.M. understands that Marshall is still interested in the Telegraph and is expected to take part in the auction once more details arrive.
The publisher behind the Yorkshire Post and other British local papers, National World, has also expressed interest since the government thwarted Redbird IMI’s takeover attempt.
“National World remains the best qualified among the various candidates for such a deal both in terms of industry qualification and also editorial independence, as well as the absence of any competition issues,” boss David Montgomery said in March.
Media magnate Rupert Murdoch could still be in the running too. However, he is allegedly only interested in using The Spectator for a strategic expansion in the US market, aligning with his right-leaning News Corp media brands.
Redbird IMI stated that the possibility of selling the titles together or separately depends on the offers received.
It is understood that potential bidders may be waiting to see what happens with a potential joint venture between Redbird IMI and Lord Rothermere’s Daily Mail General Trust (DMGT) the owner of the Daily Mail and The Mail on Sunday.
Analysts at Enders Analysis have previously called DMGT the “most highly touted UK trade buyer” for the Telegraph group but warned it could spark regulatory concerns over media plurality in the UK.
The government will not intervene directly in the sale process, but any acquisition of UK media assets may still face scrutiny by regulatory authorities, including Ofcom and the Competition and Markets Authority.
Culture secretary Lucy Frazer commented on Redbird’s announcement: “Throughout this process I have raised concerns about the potential impact of this deal on free expression and accurate presentation of news, and I took steps to ensure that media freedom was protected while there was an investigation into those concerns.
“I will now allow the parties to conduct an orderly transition and I will monitor the outcome with a view to taking any further regulatory action as required under the Enterprise Act.
“The free press is a cornerstone of our democracy and we cannot take it for granted. That is why I used my powers as Culture Secretary to investigate this deal.”
