RedBird Capital Exits Telegraph Bid Amid Controversy and Regulatory Delays

RedBird Capital Partners has withdrawn from its $671-million bid for Telegraph Media Group due to internal opposition and regulatory challenges. The decision ends ongoing negotiations about the acquisition, influenced by foreign investment concerns and delays in regulatory approval.

In a significant development that has stirred the media sector, RedBird Capital Partners, an investment firm based in the United States, has abruptly pulled out of its high-profile attempt to acquire the Telegraph Media Group, valued at 500-million-pounds ($671-million). The decision comes amid escalating internal resistance within the Telegraph newsroom. According to a source close to RedBird, the internal opposition reached a point where the firm decided to withdraw on Friday morning.

The deal, which was initially brokered by a RedBird-IMI joint venture, had been under intense regulatory scrutiny since 2023, especially after the UK government prohibited foreign state investments in UK newspapers. RedBird had hoped to proceed with the acquisition through a revised structure with IMI holding a 15% stake. However, delays in regulatory approval further complicated the acquisition efforts.

The potential acquisition of the Telegraph, which publishes the Daily Telegraph, Sunday Telegraph, and a major news website, has been a contentious issue. It involved concerns over foreign involvement and its impact on editorial independence. Britain's Department for Culture, Media, and Sport has refrained from commenting on the matter, while the collapse of the bid underscores the complexities involved in media ownership within politically sensitive contexts.

(With inputs from agencies.)