German media firm Axel Springer has agreed to buy the Telegraph Media Group for $765 million (£575 million), scuppering efforts by the owner of the Daily Mail to snap up its UK newspaper rival.
Daily Mail and General Trust (DMGT) had last year agreed a £500 million deal to buy The Telegraph.
Media investment consortium RedBird IMI said it now plans to sell the business to the Berlin-based media empire and owner of the English-language Politico.
RedBird IMI is having to sell the business after its own takeover move was blocked by the then Tory government over foreign ownership concerns.
In a statement, Axel Springer said "both parties believe that there are compelling benefits to the transaction: it will preserve the integrity of a heritage media brand and provide it with an exciting platform for growth and expansion into other geographies, while ensuring a commitment to high-quality, independent journalism and media plurality in the UK".
The deal will require finalisation and the statement went on to say that “both parties look forward to discussing this further with the Department of Culture, Media and Sports (DCMS) and other stakeholders over the coming weeks”.
Axel Springer chief executive Mathias Dopfner said: “More than 20 years ago, we tried to acquire The Telegraph and did not succeed. Now our dream comes true.
“To be the owner of this institution of quality British journalism is a privilege and a duty.
“We want to grow The Telegraph, while preserving its distinctive character and legacy, to help it become the most read and intellectually inspiring centre-right media outlet in the English-speaking world.
“The Telegraph stands for freedom, personal responsibility, democratic values and a belief in open societies and market economies.”
Mr Dopfner has been on a dealmaking spree in the past few years in an attempt to transform Axel Springer into a global media powerhouse.
The conservative-leaning German publisher, which also owns Die Welt and Business Insider, has been looking to expand its transatlantic media empire, both in Europe and the US.
RedBird IMI originally acquired the Telegraph titles as well as The Spectator magazine in 2023, but a retrospective change in British law forced the consortium to find a new buyer.
The Spectator has since been sold for £100 million ($131 million) to the hedge fund manager Paul Marshall.
RedBird IMI is a joint venture between RedBird Capital Partners, a New York-based private-equity firm founded and led by Gerry Cardinale, and IMI.
IMI is the parent company of quality news outlets, including The National, and has its headquarters in the UAE. RedBird IMI is focused on investing in premium companies across news, media, entertainment, sports and live event verticals.
