Why is the Telegraph up for sale?
The Daily and Sunday Telegraph and their stablemate, the Spectator, were put up for sale in June after the failure of the current owners, the Barclay family, to repay debts of £1.15bn to Lloyds Banking Group.
Who owns the Telegraph?
The reclusive super-rich twins Sir David and Sir Frederick Barclay paid £665m to outbid rivals and secure ownership of the titles in 2004. A fall in print sales and a squeeze on advertising revenues for newspapers in general has reduced their worth to a book value of £140m in the latest financial results filed by the Barclays. David died, aged 86, in January 2021 but the family continued to control the publication until they were put up for sale by Lloyds.
Who are the runners and riders?
RedBird IMI
On 20 November an Abu Dhabi-backed consortium, RedBird IMI, said it would take control of the Telegraph and Spectator after agreeing loans to repay debts of £1.15bn owed by the Barclays.
The consortium is a partnership between the US firm RedBird Capital and International Media Investments of Abu Dhabi. RedBird IMI is run by Jeff Zucker, a former chief executive of CNN, and mostly funded by Sheikh Mansour bin Zayed al-Nahyan, the vice-president of the United Arab Emirates and owner of Manchester City football club.
MPs, journalists and human rights groups have expressed concerns about the takeover. The auction of the publications, which began at the end of October, was paused on 21 November. A day later the culture secretary, Lucy Frazer, said she was minded to ask Ofcom, the media watchdog, to examine the proposed deal on public interest grounds, while the regulator said it was “ready to provide our assessment to government if required”.
It came after Tory MPs said in a letter to Frazer that “influence over a quality national newspaper being passed to a foreign ruler at any time should raise concerns [and] must be investigated”.
Lord Rothermere’s Daily Mail & General Trust (DMGT)
Lord Rothermere’s DMGT, which owns the Mail, Metro, i and New Scientist titles, was considering a bid for the Telegraph alongside investors – but has since decided to go it alone.
Concerns have been raised about the risk of DMGT dominance in the UK media, and the size of its empire could mean a challenge from the Competition and Markets Authority if it attempts to buy the Telegraph titles.
National World
The former Local World/Trinity Mirror boss David Montgomery formed National World in 2021. In August Montgomery confirmed he was considering expanding the company further by bidding for the Telegraph.
National Union of Journalists members at the company passed a vote of no confidence in Montgomery in July after the business looked to cut 13 roles while delivering its first shareholder dividend. Dissatisfaction over pay and redundancies led to three days of strike action.
GB News investor Sir Paul Marshall
Sir Paul Marshall, the co-founder of hedge fund Marshall Wace, is said to be leading a planned bid for the Telegraph. After the RedBird IMI proposal lawyers for Marshall said ministers should intervene to protect press freedom.
Marshall was an early investor in GB News and donated to the Vote Leave campaign before the 2016 Brexit referendum.
What is the timeline of the sale?
The auction process, organised by Goldman Sachs, launched on 20 October. It was paused on 21 November after RedBird IMI pledged to repay the Barclays’ debts. Lloyds is said to want a quick sale to ensure it is concluded before the next general election, which is expected to be held in 2024.
Why do a number of very rich men want to buy the titles?
The value of the Telegraph has been put at about £600m. Its latest financial results indicate growing profit and revenues. The Telegraph Media Group reported turnover for 2022 was up 4% year on year to £254.2m and profit before tax was up 32% to £39m. The publisher recently acquired Chelsea Magazine Company and has also achieved 1m subscriptions.
It is considered one of the “crown jewels” of the UK media market and is still thought to have significant influence on the Tory party, including the ability to shape its future leader.
