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US investment firm RedBird Capital has decided to withdraw its bid to acquire the Daily and Sunday Telegraph for £500 million. This comes after an earlier attempt to purchase the Telegraph was blocked by politicians due to the deal being predominantly financed by Abu Dhabi’s IMI group, which is owned by the Abu Dhabi royal family.
Recent legislation restricts foreign sovereign wealth funds to holding no more than a 15% stake in newspapers or periodicals. Although RedBird’s latest offer adhered to this regulation, it is understood that the government planned to subject the acquisition to a regulatory review process.
A spokesperson for RedBird confirmed the withdrawal of their bid, emphasizing their ongoing confidence in the Telegraph’s prospects. “RedBird has today withdrawn its bid for the Telegraph Media Group,” they said. “We remain fully confident that the Telegraph and its world-class team have a bright future ahead of them and we will work hard to help secure a solution which is in the best interests of employees and readers.” Sources close to the company also indicated that despite expecting approval from a government review, critical articles from within the Telegraph newsroom contributed to the decision to pull out.
RedBird has also faced scrutiny over the extent of financial backing it has received from both Chinese and Gulf investors. Meanwhile, an IMI Group representative stated that their focus has been to “end the uncertainty and secure the Telegraph’s long-term success,” and confirmed ongoing communication with other potential buyers. The group remains committed to completing a sale while cooperating with government authorities and regulators. RedBird’s founder, Gerry Cardinale, had envisioned expanding the Telegraph’s influence and subscriber base in the United States, identifying a potential market opportunity. The investment firm also owns the Italian football club AC Milan. The Daily Telegraph has been in a state of uncertainty for over two years, following the RedBird-IMI consortium’s purchase of the Telegraph’s debts from the Barclay family, with the intention of eventually assuming ownership
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