U.S. investment group RedBird Capital has abandoned its £500 million bid to acquire the Daily and Sunday Telegraph, ending months of uncertainty surrounding the future ownership of the newspapers. The company confirmed the withdrawal on Friday, citing growing obstacles despite structuring its latest offer to comply with new U.K. media ownership laws.
RedBird had previously attempted to purchase the Telegraph titles through a consortium with Abu Dhabi–owned IMI Group, but that deal was blocked after political opposition to foreign state-linked funding. A subsequent law change limited foreign sovereign wealth funds to a maximum 15% stake in U.K. newspapers and periodicals. RedBird’s latest bid followed that rule, but government officials were expected to refer the proposal for regulatory scrutiny.
A RedBird spokesperson said the firm had “withdrawn its bid for the Telegraph Media Group,” adding that it remained supportive of finding a solution that protects employees and readers. Sources close to the company maintained that they believed the bid would have passed a review but said persistent critical coverage from the Telegraph newsroom contributed to the decision to walk away.
RedBird has itself faced questions from MPs and analysts about investment received from China and Gulf-based backers. IMI Group said its priority was to end uncertainty around the Telegraph’s ownership and that it would continue engaging with interested buyers while cooperating with government and regulators.
RedBird founder Gerry Cardinale had outlined plans to expand the Telegraph’s reach in the U.S. and grow its subscriber base, arguing that the brand could fill a gap in the American market. RedBird’s investments include the Italian football club AC Milan.
The Telegraph titles have remained in limbo for more than two years. RedBird and IMI paid off the debts of the Barclay family, the papers’ previous owners, in an effort to take eventual control, but ownership has remained unresolved as political and regulatory pressures mounted.
Featured image credits: Wikimedia Commons
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