The Shocking Collapse of the Daily Telegraph's Sale: What Went Wrong?

The anticipated sale of the Daily Telegraph crumbled as US investment group RedBird Capital has officially withdrawn its £500 million bid. This move comes after prior attempts to acquire the newspaper were thwarted by political objections due to funding links with Abu Dhabi’s IMI group. Even with a new bid that complied with changing regulations allowing foreign sovereign wealth funds to hold a maximum stake of 15%, the UK government planned to subject the deal to a regulatory review.

Despite asserting their confidence that the deal would pass scrutiny, RedBird cited negative press and internal dissent from the Telegraph newsroom as crucial factors in their decision to pull out. RedBird founder Gerry Cardinale had intended to enhance the newspaper’s reach and subscriber base in the US market, recognizing a niche opportunity. However, the ongoing uncertainties surrounding the Telegraph, which has been in a state of flux for over two years since RedBird and IMI settled the debts of previous owners, the Barclays, have complicated the situation further.

An IMI spokesperson vowed to maintain dialogues with ‘interested parties’ for a potential deal, emphasizing their commitment to securing the newspaper’s future and collaborating with the government and regulators. Meanwhile, RedBird Capital, known for owning the Italian football club AC Milan, is now seeking a way forward to support both employees and readers despite the abrupt end to their pursuit of ownership.