A naukri.com initiative
Guardian
1M
171
Image Credit: Guardian
RedBird Capital confident of tabling a deal to take control of Telegraph
- US private equity firm RedBird Capital is confident of tabling a deal to take control of the Daily and Sunday Telegraph next month to end 'paralysis and unhappiness' at the 170-year-old titles.
- The firm's founder, Gerry Cardinale, is involved in drafting a plan to form a consortium or self-fund a takeover at Telegraph Media Group.
- RedBird Capital was part of a joint venture that took control of the group in 2023 but was forced to put the titles up for sale due to a UK law prohibiting foreign ownership of newspaper assets.
- The firm is seeking a buyer willing to pay the £500m investment, with potential interest from parties like Lord Rothermere's DMGT.
- RedBird Capital has conversed with UK parties, including potential suitor DMGT, and has sufficient resources to backstop a deal alone.
- IMI wants to retain an investment in the Telegraph, pending government regulations on foreign ownership, with a possible 10%-15% ownership threshold being considered.
- The ongoing ownership uncertainties have affected staff morale, with RedBird IMI also in talks with potential suitors like Todd Boehly and David Montgomery.
- Various individuals, including Dovid Efune and Lord Saatchi, have shown interest in acquiring the Telegraph newspapers, with the Barclay family's debts leading to the uncertainty over the titles' future.
- The Telegraph's ownership upheaval traces back to the acquisition by the Barclay family in 2004, leading to debts and subsequent control by Lloyds Banking Group.
Read Full Article
10 Likes
For uninterrupted reading, download the app