RedBird Capital Partners announced that it has reached an in-principle agreement to acquire The Telegraph Media Group at a total enterprise valuation of £500 million, making it the sole controlling owner. And it is the most significant investment in UK print media in a decade and unlocks a new era of growth for the 170-year-old title.
RedBird’s strategy will include capital investment in the group’s digital operations to continue driving subscriptions, utilizing data analytics and AI tools to expand the value proposition to its core subscriber base and potential new subscribers.
RedBird will also build on the strong financial foundations established by the current management team, working closely with them to expand the brand internationally, with a focus on the US, where RedBird has a strategic presence across news, media, and sports. RedBird and TMG senior leadership will work together to develop new content verticals in areas such as travel and events to maximize the commercial opportunities from a growing international and mass affluent subscriber base.
With this deal, RedBird 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 with Skydance Entertainment’s merger with Paramount Global.
A significant part of RedBird’s strategy is expanding The Telegraph’s global reach, particularly in the United States, utilizing the title’s iconic brand and authoritative reporting to drive new audiences seeking independent journalism. And 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.
RedBird is in discussions with select UK-based minority investors who have expertise in print media and a strong commitment to upholding the editorial values of The Telegraph. And International Media Investments (IMI) will also participate in the acquisition as a minority investor, subject to the passage of secondary legislation regarding foreign ownership thresholds.
RedBird Capital Partners was launched in 2014 by Gerry Cardinale, a leading investor and philanthropist with significant experience in building multi-billion-dollar iconic intellectual property companies. Running a global portfolio of sports, media, and entertainment, and financial services companies, RedBird spans ten offices worldwide, serving blue-chip institutional and family office investors seeking unique, transformative, and differentiated investment opportunities across these three industry verticals.
RedBird’s investments include Skydance Media (Larry and David Ellison) and its pending merger with Paramount Global; All3 Media; AC Milan; Fenway Sports Group (Boston Red Sox, Liverpool FC, Pittsburgh Penguins, PGA Tour); the Yankees Entertainment & Sports (YES) Network (New York Yankees and Amazon); Artists Equity (Ben Affleck and Matt Damon); Fulwell Entertainment (Ben Winston, James Corden and Maverick Carter); the United Football League (Disney/ESPN, Fox and Dwayne Johnson); the Indian Premier League’s Rajasthan Royals; and Formula One’s Alpine Racing team.
RedBird also has a foothold in the financial services sector through a broad investment portfolio across insurance, specialty finance and wealth management, such as Arax, one of the fastest growing wealth management platforms in the US that RedBird has scaled to $27 billion of AUM; Aquarian, a diversified life and annuity carrier and asset management platform with $20 billion in assets; and Bishop Street Underwriters, which recently acquired Landmark Underwriting, a specialty-focused managing general agent based in London, to expand its reach into the UK insurance market.
KEY QUOTES:
“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 monetization. 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.”
“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.”
Gerry Cardinale, Founder and Managing Partner of RedBird
“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.”
Chris Evans, Editor of The Daily Telegraph
“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.”
Anna Jones, CEO of Telegraph Media Group
