Key facts
- Axel Springer has completed its £575 million takeover of The Telegraph.
- The acquisition received regulatory approval in the UK, Ireland, and Austria.
- The Telegraph Media Group was previously controlled by RedBird IMI.
- New UK legislation prevented foreign state ownership of newspaper assets.
- Axel Springer's offer was a £75 million premium to a previous deal.
European media group Axel Springer has finalized its £575 million takeover of The Telegraph, concluding three years of ownership uncertainty. The Germany-headquartered company announced it has received all necessary regulatory approvals in the UK, Ireland, and Austria to take full control of Telegraph Media Group (TMG).
Mathias Döpfner, chief executive and controlling shareholder of Axel Springer, expressed his long-held commitment to the acquisition, noting shared values and a tradition of technological innovation between the two companies. Döpfner aims to leverage Axel Springer's digital assets to accelerate The Telegraph's digital transformation and expand its reach into the US, with the goal of making it the leading center-right media outlet in the English-speaking world.
The sale process began in 2023 when the Barclay family lost control of TMG due to £1.16 billion in unpaid debts to Lloyds bank. RedBird IMI, which is 75% controlled by Sheikh Mansour bin Zayed Al Nahyan, initially took control of the publishing group. However, the British government subsequently passed a law blocking foreign states or associated individuals from owning UK newspaper assets, introducing a 15% cap on foreign state influence. This forced RedBird IMI to put the titles back up for sale.
A consortium led by Gerry Cardinale’s RedBird Capital, the junior partner in RedBird IMI, had previously tabled a £500 million deal but withdrew it. DMGT was also close to acquiring the titles after securing government permission for a right-to-buy option. However, Axel Springer ultimately submitted a higher offer, a £75 million premium to DMGT's bid, which was accepted by RedBird IMI.
Chris Evans, editor-in-chief of The Telegraph, stated that Axel Springer and The Telegraph share common values, vision, and ambition, expressing optimism for growth opportunities both domestically and internationally. He highlighted that after three years without owners, the team looks forward to embarking on a new journey.