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RedBird Capital withdraws £500m bid for Telegraph Media Group
US investment firm RedBird Capital has abandoned its £500 million bid to acquire the Daily and Sunday Telegraph, citing regulatory uncertainty and internal resistance from the newspaper's newsroom as key factors in its decision.
Background: A second failed attempt
This marks RedBird's second unsuccessful effort to purchase the Telegraph titles. Its initial bid in 2023 collapsed after UK lawmakers blocked the deal due to concerns over foreign influence-specifically, the involvement of Abu Dhabi's International Media Investments (IMI), which is controlled by the emirate's royal family.
A subsequent change in UK media ownership laws restricted foreign sovereign wealth funds to a maximum 15% stake in newspapers. RedBird's revised bid complied with this rule, but sources indicate the government still planned to subject the deal to a lengthy regulatory review.
Newsroom opposition and investor scrutiny
Insiders close to RedBird acknowledged that while they believed the bid would ultimately pass regulatory scrutiny, sustained criticism from the Telegraph's own journalists contributed to the withdrawal. The newsroom had published multiple articles questioning the bid's transparency and potential editorial independence risks.
RedBird itself has faced broader scrutiny over its funding sources, including investments from Chinese and Gulf-based backers. The firm's founder, Gerry Cardinale, had envisioned expanding the Telegraph's US subscriber base, identifying a market gap for its conservative-leaning content.
Reactions and next steps
A RedBird spokesperson stated,
"RedBird has today withdrawn its bid for the Telegraph Media Group. We remain fully confident that the Telegraph and its world-class team have a bright future ahead of them and will work hard to help secure a solution in the best interests of employees and readers."
IMI, which retains a financial stake in the Telegraph after clearing the Barclay family's debts in 2021, reiterated its commitment to finalizing a sale. A spokesperson said the group's "priority has been to end the uncertainty and secure the Telegraph's long-term success" and confirmed ongoing discussions with other potential buyers.
Two years of ownership limbo
The Telegraph has operated under prolonged uncertainty since 2021, when the RedBird-IMI consortium settled debts owed by the Barclay family-the newspaper's former owners-in exchange for a path to eventual control. The collapse of this latest bid leaves the titles' future ownership unresolved, with no immediate alternative buyers announced.
RedBird's portfolio includes high-profile assets such as Italian football club AC Milan. The firm had positioned the Telegraph acquisition as a strategic expansion of its media holdings, particularly in the US market.
