Telegraph Media Group
LONDON: Abu Dhabi-backed investment fund Redbird IMI is poised to acquire control of The Daily and Sunday Telegraph newspapers, along with The Spectator magazine in the UK. Redbird IMI, a joint venture between Redbird Capital in the US and Abu Dhabi’s International Media Investments, has finalized a deal for a £600 million ($750 million) package of loans to facilitate the takeover of the Telegraph Media Group.
The Barclay family has controlled the parent company of these right-leaning titles for nearly two decades, but financial challenges led to the group being put up for sale this year.
The joint venture aims to pay off debts owed to Lloyds Banking Group, enabling the media group to exit receivership. RedBird IMI also plans to convert another loan, secured against the Telegraph and Spectator titles, into equity, with regulatory approval potentially granting them eventual ownership of the Telegraph Media Group.
Jeff Zucker, CEO of RedBird IMI and former president of CNN, clarified that RedBird Capital would independently manage the publications, with IMI playing a passive investor role.
This development has attracted attention from UK Conservative MPs who have urged the government to investigate Abu Dhabi’s role in the takeover using national security laws.
Concerns have been raised about the acquisition of national newspapers by overseas sovereign wealth funds. RedBird IMI, in response, emphasized its commitment to maintaining the existing editorial teams of the Telegraph and Spectator publications to preserve their reputation and credibility.
The Telegraph Media Group, acquired by the Barclay twins in 2004, faced financial difficulties, leading to the appointment of a receiver in June. The joint venture’s announcement is subject to regulatory review, and RedBird IMI has expressed its willingness to cooperate fully with government and regulatory authorities.
