Daily Mail owner strikes $1b deal for UK’s Telegraph
Daily Mail owner DMGT said it had struck a £500m ($A1bn) deal to buy rival newspaper the Telegraph in a partnership that would create one of the most powerful right-leaning media groups in Britain.
The deal comes a week after US-based private investment firm RedBird Capital Partners withdrew its bid for the Daily Telegraph, one of Britain’s largest newspapers.
Daily Mail and General Trust (DMGT) has agreed to buy the Telegraph from RedBird IMI after an attempt to buy it by Abu Dhabi-backed investment firm RedBird Capital Partners was blocked by the then Conservative government.
People close to the talks said the transaction was valued at about Stg500 million ($A1 billion).
The parties entered the exclusivity period to finalize the terms of the transaction, which they expect to occur quickly, and to prepare the necessary regulatory applications.
The Telegraph did not immediately respond to Reuters’ request for comment.
A spokesperson for RedBird IMI said: “DMGT and RedBird IMI worked quickly to reach the agreement which has been announced today and will be presented to the Secretary of State shortly.”
DMGT chairman Lord Rothermere said he had long admired the Daily Telegraph, known online as the Telegraph.
“The Daily Telegraph is Britain’s largest and highest quality broadsheet newspaper and I grew up respecting it,” he said.
“It has an extraordinary history and has played a vital role in shaping Britain’s national debate for decades.”
Lord Rothermere said that under DMGT’s ownership the newspaper would become a global brand like the Daily Mail.
The acquisition will see the Telegraph become part of DMGT’s media outlets, which also include Metro, The I Paper and New Scientist.
The media group said it would “invest significantly” in the Telegraph and accelerate its international expansion, with a particular focus on the US.
A spokesman for the Ministry of Culture, Media and Sport said the Secretary of State had taken note of the announcement of the agreement.
“We will review any new purchaser of the Telegraph in line with the public interest and foreign state influence media merger regimes set out in the legislation,” the spokesman said.
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