U.S. investment firm Redbird agrees to buy Britain’s venerable Telegraph newspaper

The Daily Telegraph newspaper with the front page of French President Emanuel Macron is seen at a supermarket in London, March 21, 2024. (AP Photo/Kin Cheung, File)

LONDON -- A consortium led by U.S. investment firm RedBird Capital Partners has agreed to buy the publisher of Britain’s 170-year-old Daily Telegraph newspaper for about 500 million pounds (US$674 million), the two sides said Friday.

Redbird said it has reached an agreement in principle to become controlling owner of the Telegraph Media Group, ending a lengthy takeover saga for the conservative-leaning newspaper.

Gerry Cardinale, founder and managing partner of RedBird, said the sale “marks the start of a new era for The Telegraph as we look to grow the brand in the U.K. and internationally, invest in its technology and expand its subscriber base.”

The Telegraph group, previously owned by Britain’s Barclay family, was put up for sale two years ago to help pay off the family’s debts. It publishes the daily and Sunday Telegraph newspapers and weekly newsmagazine The Spectator, which all are closely allied to Britain’s Conservative Party.

In 2023, there was an offer to buy the publications from RedBird IMI, a consortium backed by RedBird Capital Partners and Sheikh Mansour bin Zayed Al Nahyan, a member of Abu Dhabi’s royal family and the vice-president of the United Arab Emirates.

But the consortium pulled out last year following strong opposition from the U.K. government, which launched legislation to block foreign state ownership of the British press.

Under the deal, Abu Dhabi’s IMI will take a minority stake of not more than 15 per cent in the Telegraph as a member of the consortium. The sale must be approved by British regulators.

RedBird has investments in soccer team AC Milan, the parent company of Liverpool football club and film production company Skydance.

Telegraph Media Group chief executive Anna Jones said that “RedBird Capital Partners have exciting growth plans that build on our success -- and will unlock our full potential across the breadth of our business.”

The Spectator was sold separately in September to British hedge fund investor Paul Marshall.