The British media group that publishes The Daily Telegraph has been sold to the German conglomerate Axel Springer by RedBird IMI.
With more than one million paying digital subscribers, ambitious growth plans in the US market and a thriving newsletter audience, the Telegraph Media Group has consolidated its position as the leading voice on the centre-right since RedBird IMI launched its bid for the title in late 2023.
The deal was sealed at 12pm UK time when Axel Springer formally submitted its £575 million agreement to buy the title.
RedBird IMI's interest in The Telegraph was secured in late 2023 for £600 million from its former owners, the Barclay family, which included the weekly magazine The Spectator. That title was sold to Old Queen Street Media in a separate deal for £100 million in September 2024.
Total proceeds from the two sales are expected to bring RedBird IMI a surplus of £75 million above the price paid in 2023. Sources close to the deal said those involved with The Telegraph were pleased that there was no adverse impact from the collapse of the business of the former owners, the Barclay family. Since 2023, The Telegraph has continued to deliver strong editorial and financial performance and has extended its reach as a leading newspaper and digital news service.
"All sides involved with the Telegraph agree that its future lies as a strong centre-right news brand and there is a tremendous value to that franchise not only in the UK but also across the US and the rest of the English-speaking world," an insider close to the process said. "The key is that the US market is the one to crack, there is a serious gap in the market and real potential for the Telegraph as a business."
Culture Secretary Lisa Nandy confirmed she had given the deal the go-ahead earlier this week in a statement that said her consent to transfer the option had been given and that she was “not minded to intervene” in the process on other grounds.
“I am pleased to be able to take these positive steps, which give greater certainty to the Telegraph and its staff,” she added.
Mathias Dopfner, chief executive of Axel Springer, said the next step was to invest in The Telegraph as an international media force.
“We are pleased to have received UK government approval to proceed with this acquisition," he said after Ms Nandy's decision.
“After a long period of uncertainty, we can confirm that we will invest significantly in The Telegraph’s editorial excellence and international growth.”
“This transaction reflects the disciplined execution of our investment strategy and our ability to act with clarity and conviction. From acquisition to exit, RedBird IMI has delivered a profitable outcome to our shareholders,” said Karim Ben Salah, IMI chief investment officer. IMI is a joint-venture partner of RedBird IMI and owner of The National.
While RedBird IMI was unable to convert its interest in The Telegraph to full ownership after an intervention by the British Parliament, the sales process generated strong market interest in both titles.
The deal between Axel Springer and RedBird IMI coincided with another blockbuster media transaction that would reshape the UK and wider streaming landscape. Banijay Entertainment and All3Media, also owned by RedBird IMI, agreed on a deal to merge their operations.
Banijay's Marco Bassetti is to be installed as chief executive with All3's Jane Turton as deputy in the creation of an almost $4 billion business by revenue.
The Telegraph has developed a suite of 31 newsletters that helped drive paid subscriptions to more than one million during the option. The flagship From the Editor newsletter goes out to around 850,000 people daily and the audience lists for newsletters top two million.
Mr Dopfner also pointed out that Axel Springer had a long-standing interest in The Telegraph as a media asset. He said that his organisation was a bidder more than 20 years ago when the title changed hands from the Canadian Lord Black to the Barclay family, who lost control to their bank in 2023.
This week, Mr Dopfner interviewed the leader of the Conservative party, Kemi Badenoch. The Telegraph has traditionally been the voice of the party's grass roots.
Other bids for The Telegraph included a move late last year by the Daily Mail and General Trust to buy the operations for £500 million. That bid hit competition concerns and Axel Springer swooped in with a higher offer.
