RedBird Capital withdrew its £500m bid for the Telegraph Media Group on Friday, plunging the 170-year-old newspaper's future back into uncertainty. The collapse triggers a fresh auction expected in the new year.
The US investment firm's withdrawal marks the latest twist in a tumultuous ownership saga spanning nearly two-and-a-half years. Lenders seized control from the Barclay family in 2023, leaving the Telegraph titles in limbo ever since.
A RedBird spokesman confirmed to Sky News: «RedBird has today withdrawn its bid for the Telegraph Media Group.» The firm expressed confidence in the newspaper's future, stating: «We remain fully confident that the Telegraph and its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 which is in the best interests of employees and readers.»
China controversy fuels collapse
The deal faced intense scrutiny over RedBird's alleged ties to China. Telegraph journalists published investigations exploring links between RedBird and Chinese state influences, reportedly angering RedBird founder Gerry Cardinale.
A photograph from 2024 showed RedBird Capital chair John Thornton shaking hands with Cai Qi, a senior Chinese Communist party official and close ally of President Xi Jinping. Thornton sits on the advisory council of China Investment Corporation and previously chaired Silk Road Finance Corporation.
Nine human rights and freedom of expression organizations wrote to Culture Secretary Lisa Nandy in August, urging her to halt the takeover. The Telegraph newsroom and prominent allies, including former editor Charles Moore, called for investigations into RedBird's China connections.
The troubled deal structure
RedBird IMI took control of the Telegraph in 2023 by covering the Barclay family's debts to Lloyds bank. Government legislation against foreign state ownership of UK newspapers forced a sale in April last year.
The proposed deal would have given Abu Dhabi-based International Media Investments a 15% stake. Daily Mail owner Lord Rothermere and billionaire Sir Leonard Blavatnik were lined up to hold roughly 10% each.
IMI is controlled by Sheikh Mansour bin Zayed al-Nahyan, Vice-President of the United Arab Emirates and owner of Manchester City FC. RedBird defended itself as a private equity fund focused on investment growth, promising to establish an independent advisory board to uphold journalistic integrity.
Note: This article was created with Artificial Intelligence (AI).
