US investment group RedBird Capital has abandoned its proposed £500m takeover of The Telegraph, throwing the future of the newspaper into question.
It is the latest twist in a tumultuous two-year takeover process for the 170-year-old newspaper business.
A spokesperson for RedBird Capital Partners said on Friday: “RedBird has today withdrawn its bid for the Telegraph Media Group. We remain fully confident that The Telegraph and its world-class team have a bright future ahead of them and will work hard to secure a solution which is in the best interests of employees and readers.”
The announcement comes as RedBird and its partner IMI lined up to face investigations of their plans for the paper by regulators, The Telegraph reported.
According to the newspaper, Chris Evans, the editor of The Telegraph, told staff it was “no secret” that all senior editors and many writers had concerns about the bid.
Mr Evans said: “On the other hand, it’s also obvious that this process has gone on far, far too long. The Telegraph deserves owners who care about journalism and who will invest. We will do our best to ensure this process ends as soon as possible – with a buyer who shares our passion and our ambition for The Telegraph.”
A source close to RedBird said: “This got pulled because there was simply too much time and opposition to a deal which would have helped British media. Time to move on and find another buyer. The support for investors wanting to invest in the UK has been deeply disappointing. We move on.”
A spokesperson for Telegraph Media Group Holdings told The Independent: “Our immediate priority is to minimise disruption to the business and work with all stakeholders, including DCMS, towards a solution.”
According to the paper, Telegraph Media Group chief executive Anna Jones said: “I will now work with the board of independent directors on next steps and what this means for the future ownership of the business.
“This process has been challenging and unpredictable but your hard work and continued patience is a credit to you all.”
The deal, announced in May, was initially blocked by the government due to new regulations that prevent foreign state ownership of the press.
The collapse of the sale follows a two-year takeover saga, in which RedBird IMI previously attempted to purchase the group in 2023.
The Abu Dhabi-backed fund had reached an agreement with the Barclay family to purchase the group, including The Spectator, by paying off the debts. But in March 2024, the government said it would bring forward legislation that would block the deal.
