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Daily Mail Owner DMGT Strikes £500 Million Deal to Acquire The Telegraph
DMGT, the owner of the Daily Mail, has agreed to a £500 million ($650 million) deal to buy The Telegraph, forming one of the UK’s most powerful right-leaning media groups. The acquisition comes a week after RedBird Capital withdrew its bid due to regulatory delays and internal newsroom resistance.
The owner of the Daily Mail, DMGT, announced on Saturday that it has reached a £500 million ($650 million) agreement to acquire rival newspaper The Telegraph. The deal is expected to create one of the most influential right-leaning media groups in the United Kingdom.
The agreement comes just a week after U.S. private investment firm RedBird Capital Partners withdrew its bid for The Telegraph, one of Britain’s leading newspapers.
In 2023, a RedBird-IMI joint venture had purchased The Telegraph Media Group and The Spectator magazine. However, the UK government intervened, blocking foreign-state-linked investment in British newspapers. RedBird later sought approval under a revised structure in which IMI—backed by Abu Dhabi—would hold only up to a 15% minority stake.
A source close to RedBird told Reuters that the regulatory clearance process was progressing more slowly than expected, raising doubts about the acquisition timeline and overall feasibility. Persistent internal opposition from senior members of The Telegraph newsroom also contributed to the company’s decision to step back.
According to the Financial Times, which first reported the DMGT agreement, the deal price of around £500 million is designed to repay the funds spent by the RedBird-led consortium.
DMGT said in a statement that the parties have entered an exclusivity period to finalise terms and prepare the necessary regulatory submissions, which are expected soon. The company added that the transaction will comply with the UK’s Foreign State Influence regime, as the funding structure does not involve foreign-state investment or capital.
DMGT had previously expressed interest in bidding for The Telegraph Media Group in 2023. Sky News reported in May that DMGT was in talks to acquire a 9.9% stake in The Telegraph titles.
DMGT’s media portfolio includes The Mail on Sunday, Metro, the i newspaper and New Scientist. The Daily Telegraph will remain editorially independent from DMGT’s other brands.
A RedBird IMI spokesperson said: “DMGT and RedBird IMI have worked quickly to reach the agreement announced today, which will soon be submitted to the Secretary of State.”
The Telegraph did not immediately respond to Reuters’ request for comment.
($1 = 0.7639 pounds)
