German media giant Axel Springer is to buy Telegraph Media Group in a £575m deal that will see the Daily and Sunday Telegraph print titles and their online business come under overseas ownership.
The deal, which is subject to regulatory approval, will see titles with historic links to the Conservative Party and the British establishment, in the same stable as German titles Bild and Die Welt, along with online specialist media brands Politico and Business Insider.
The owner of the Daily Mail had been in talks to buy The Telegraph titles for several months, a deal that would have brought several of the UK’s largest right-of-centre outlets under single ownership.
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Scepticism about that deal has grown after an exclusivity period passed without a deal, amid concern any transaction would face intense scrutiny from the Labour government given of the political stance of the titles.
Discussions between Axel Springer and Redbird IMI, the US-Emirati group that controlled ownership of the group, intensified in recent weeks, and staff at the newspaper’s London offices were informed of the deal this morning.
An end to nearly three-years of limbo?
If approved, the deal will end nearly three years of limbo for the historic titles, whose future has been uncertain since Lloyds Banking Group took control of the group in lieu of unpaid debts owed by former owners, the Barclay brothers.
Redbird IMI appeared to have taken control of the titles in 2023 after short-circuiting an auction process by buying the debt directly from Lloyds, but the then-Conservative government blocked the deal after a campaign of opposition led by The Telegraph titles and allies in Parliament.
With Redbid IMI majority owned by the Abu Dhabi sovereign wealth fund, they objected to what it considered to be effective state ownership.
The government amended the law to prevent a state entity from owning more than 15% of a British media group, preventing Redbird-IMI from turning its debt into equity.
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Several suitors have come and gone since, including Redbird acting without Abu Dhabi, but their attempt to take control also faced objections from Telegraph editorial staff and MPs, who raised concerns about Chinese and other Gulf investment.
The three-year hiatus has been unsettling for staff, and there was hope that a deal with the Daily Mail would bring stability and familiar ownership. Daily Telegraph editor Chris Evans is a former Mail staffer, and the titles have comparable political outlooks.
What does it mean editorially?
The thought of the proudly and consistently Eurosceptic Telegraph coming under German ownership will be noted in Westminster, and by its competitors, where there may be questions about the title’s future outlook.
One of Axel Springer’s founding principles is a commitment to a “united Europe”.
In a statement, Axel Springer chief executive Mathias Dopfner said it would respect The Telegraph’s editorial independence, and its goal was to create the leading centre-right media outlet in the English-speaking world.
“To be the owner of this institution of quality British journalism is a privilege and a duty,” said Mr Dopfner.
“We want to grow The Telegraph, while preserving its distinctive character and legacy, to help it become the most read and intellectually inspiring centre-right media outlet in the English-speaking world.
“We are aware that the amazing journalists and employees at TMG have been operating in an extended period of uncertainty. That is never easy. We want to bring that uncertainty to an end as soon as we can and welcome you into Axel Springer.”
A Department for Culture, Media and Sport spokesperson said: “We note the announcement today on the sale of Telegraph Media Group.
“The secretary of state will, as she has throughout, follow the established regulatory process and assess the new deal proposed. We will keep Parliament updated on this process.”
