Daily Mail and General Trust DMGT has entered into exclusive negotiations to acquire The telegraph Media Group TMG in proposed agreement.
The editor of Daily Mail agreed to purchase the Daily Telegraph And Sunday Telegraph for £500 million ($650).
The DMGT said it had entered a period of discussion with RedBird IMI, a joint venture between the UAE and US private equity firm RedBird Capital Partners.
The proposed deal is a potential consolation for Britain’s right-wing press after a previous bid from a UAE-backed consortium failed.
The deal comes a week after US private investment firm RedBird Capital Partners withdrew its purchase offer for The Telegraph, one of the largest British newspapers.
RedBird Capital’s offer for control of The telegraph collapsed last week. The US-based investment firm has officially withdrawn from the acquisition process.
The company had previously sought to buy these media assets, but faced legislative opposition due to the involvement of Abu Dhabi’s IMI Group, owned by the Abu Dhabi royal family.
“RedBird today withdrew its offers on The telegraph Media Group TMG,” the RedBird spokesperson said in a statement.
“We remain fully convinced that The telegraph and its own world-class team have a bright future ahead of them and we will work hard to help find a solution that is in the best interests of employees and readers,” the statement added.
Daily Mail publishers move to acquire Telegraph Media Group TMG
In a smart move, DMGT stepped in to acquire TMG following RedBird IMI’s withdrawal from the deal.
Lord Rothermere, chairman of the DMGT, said he “has long admired the Daily Telegraph” and the proposed acquisition would give “indispensable confidence” to Telegraph employees after years of uncertainty over the future of the title.
He added: “The Daily Telegraph is Britain’s biggest and best quality broadsheet newspaper and I grew up respecting it. It has a remarkable history and has played a vital role in shaping the British national debate for many decades. »
This new agreement will also allow the group to benefit Daily Mail crucial resources and experience in transforming media brands in a digital world and growing UK brands into global information operations.”
If the deal is approved and finalized, it would merge two of Britain’s largest right-wing media outlets, sparking scrutiny over the concentration of media power.
DMGT stated that the Daily Mail And Telegraph editorial teams will remain separate and editorially independent, with investments planned to further the titles’ goal of becoming a global brand.
Additionally, the Secretary of State will review the new agreement, with DMGT saying its case for approval is compelling as the financing structure will not include foreign public investment.
“DMGT is confident that any regulatory process can be concluded quickly and positively, as the case for approving the acquisition is compelling,” the company said.
