RedBird Capital Partners has announced an in-principle agreement to acquire the Telegraph Media Group, becoming the sole control owner, which unlocks a new era of growth for the 170-year-old title
RedBird Capital Partners announced that it has reached an in-principle agreement to acquire The Telegraph Media Group at a total enterprise valuation of £500m, becoming the sole control owner. It is the largest investment in UK print media in a decade and unlocks a new era of growth for the 170-year-old title.
RedBird’s growth strategy will include capital investment in the group’s digital operations to continue driving subscriptions, using best in class data analytics and Artificial Intelligence tools to expand the value proposition to its core subscriber base and potential new subscribers. RedBird will build on the strong financial foundations established by the current management team and will work with them to grow the brand internationally, with a focus on the United States where RedBird has a strong strategic presence across news, media and sports. Together, RedBird and TMG senior leadership will work to develop new content verticals in areas such as travel and events to maximise the commercial opportunities from a growing international and mass affluent subscriber base.
With this transaction, RedBird has emerged as one of the largest investors in UK media, sports and entertainment, with a portfolio including Premier League Champion Liverpool FC; All3Media, the UK’s largest independent television, film and digital production and distribution company; Fulwell Entertainment, one of the UK’s leading television, film and music production companies; Build a Rocket Boy, one of the UK’s largest independent video gaming and entertainment studios; and the pending acquisition of the UK’s Channel 5 as a result of Skydance Entertainment’s merger with Paramount Global.
Gerry Cardinale, Founder and Managing Partner of RedBird, said:“This transaction marks the start of a new era for The Telegraph as we look to grow the brand in the UK and internationally, invest in its technology and expand its subscriber base. We believe that the UK is a great place to invest, and this acquisition is an important part of RedBird’s growing portfolio of media and entertainment companies in the UK. Having now spent time with Chris Evans, Anna Jones and the entire senior management team at The Telegraph, we have tremendous conviction in the growth potential of this incredibly important cultural institution.”
“RedBird has a 30-year track record partnering with iconic, longstanding brands and supporting their underlying intellectual property for new forms of monetisation. We are looking forward to working with The Telegraph’s exceptional leadership to deliver a growth plan that takes The Telegraph’s journalism to new audiences around the world.”
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“I also want to thank the Independent Directors and Deputy Chairman, Lord Black, for their tireless work and unwavering commitment to seeing this sale process through over the last two years. With this announcement, we are now looking forward to working with the Independent Directors and UK government regulators to complete our acquisition process.”
Chris Evans, Editor of The Daily Telegraph, said: “The Telegraph has made enormous progress in recent years since the launch of its digital subscriptions strategy, thanks to the hard work of its brilliant staff. But there is much more that can be achieved. With the right plan and the right investment by ambitious new owners, this venerable title can look forward to an era of unprecedented success.”
Anna Jones, CEO of Telegraph Media Group, said: “Telegraph Media Group is an award-winning news media organisation, with exceptional journalism at its heart, supported by leading commercial expertise, a commitment to innovation and a laser focus on data to drive strategy. RedBird Capital Partners have exciting growth plans that build on our success – and will unlock our full potential across the breadth of our business.”
RedBird has ambitious growth plans that focus on investing in top journalistic talent, from award-winning reporters to opinion-leading commentators. It will also remove barriers to growth and accelerate the transition to digital, building on The Telegraph’s success as ‘Website of the Year’ at the UK Press Awards for two consecutive years.
A key part of RedBird’s strategy is expanding The Telegraph’s global reach, particularly in the United States, leveraging the title’s iconic brand and authoritative reporting to drive new audiences seeking world class independent journalism. Collaboration across RedBird’s portfolio will create unique partnership opportunities, blending tradition with innovation to expand The Telegraph’s position as a global leader in quality journalism.
Source: Businesswire