(qlmbusinessnews.com . Sat 15th Nov, 2025) London, UK —
Telegraph Sale Saga Continues: RedBird Capital Backs Out Over Funding Concerns
In a significant turn of events, the American investment group, RedBird Capital, has retracted its £500 million offer for the ownership of the esteemed British newspapers, the Daily and Sunday Telegraph.
Originally, RedBird's acquisition efforts were thwarted due to concerns revolving around its funding. A significant portion of the investment was backed by Abu Dhabi's IMI group, a conglomerate under the ownership of the Abu Dhabi royal family. This raised eyebrows amidst a regulatory atmosphere that recently saw a change in legislation, imposing a cap whereby foreign sovereign wealth funds are restricted to a maximum 15% stake in UK newspapers or periodicals.
Adhering to the new regulations, RedBird revamped its bid to align with the stipulated ownership cap, only to face the prospect of a stringent government-led regulatory review. A spokesman for RedBird remarked, “RedBird has today withdrawn its bid for the Telegraph Media Group. We maintain our positive outlook on the Telegraph’s prosperous future and are committed to facilitating a resolution that prioritizes the welfare of its employees and readers.”
Despite RedBird expressing confidence that their proposal would survive a governmental examination, the disfavor manifested through adverse coverage from within the Telegraph’s own ranks reportedly influenced the decision to abandon the acquisition efforts. Additionally, RedBird has navigated scrutiny regarding the volume of its investments originating from Chinese and Gulf-based entities.
In response to the unfolding situation, a spokesperson for the IMI Group stated their dedication to dissolving prevailing uncertainties and championing the Telegraph's enduring success. They confirmed ongoing dialogues with potential buyers, emphasizing a commitment to conclude a sale while complying with regulatory and governmental frameworks.
Gerry Cardinale, the mastermind behind RedBird, had aspired to leverage the Telegraph’s brand to amplify its presence and subscriber base across the Atlantic, identifying a lucrative opportunity within the American market. RedBird Capital’s portfolio is diversified, including the ownership of the renowned Italian football club, AC Milan.
The saga of the Telegraph’s sale has stretched over two years, initiated when the RedBird IMI consortium discharged the debts of its former proprietors, the Barclay family, positioning themselves for future ownership of the newspapers. This recent development leaves the path forward for the Telegraph shrouded in uncertainty, as stakeholders regroup in search of a viable pathway ahead.
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