Key Points
- Daily Mail publisher DMGT is in exclusive talks to buy the Telegraph for £500 million.
- The deal replaces a failed bid by the Abu Dhabi-backed group Redbird IMI.
- The UK government previously blocked Redbird’s takeover due to concerns over foreign state influence.
- DMGT Chairman Lord Rothermere plans to expand the Telegraph into a global media brand.
The publisher behind Britain’s Daily Mail, DMGT, has begun exclusive talks to acquire the Telegraph Media Group. This potential move would bring together two heavyweights of British media, both of which have historically backed the Conservative Party. DMGT confirmed on Saturday that they aim to finalize the terms of a £500 million ($654 million) deal to buy the Telegraph from Redbird IMI, a venture backed by investors from Abu Dhabi.
This agreement offers a potential solution to a long, complex battle over who will run one of the UK’s oldest newspapers. Redbird IMI tried to take control of the Daily Telegraph and its Sunday edition two years ago. However, the takeover hit a wall when British politicians raised serious concerns. They worried about the implications of a foreign government holding ownership stakes in a major British news organization.
The trouble originally started in 2023. The Barclay family, who owned the Telegraph for years, lost control of the company during a dispute with Lloyds Banking Group over unpaid debts.
Redbird IMI stepped in to pay off those loans in exchange for ownership. But that move triggered a fierce debate in the House of Commons about protecting the national political conversation from outside influence. The previous government, led by Rishi Sunak, moved to block the deal to ensure the news remained free from foreign state interference.
Now, Lord Rothermere, the chairman of DMGT, sees a clear path forward. He released a statement saying he believes his company can turn the Daily Telegraph into a global brand, just as they did with the Daily Mail. DMGT stated that it expects to complete the transaction quickly.
Despite the optimism, the government is still watching. Culture Secretary Lisa Nandy said she will review the new acquisition plan. She needs to ensure the deal protects the public interest and complies with the laws governing media mergers.
While this deal removes the issue of foreign state ownership, merging two powerful right-leaning newspapers will likely draw significant regulatory attention. For the Telegraph, founded in 1855, this deal could finally end years of uncertainty regarding its future.
