Daily Mail Owner Secures Funding for Telegraph Takeover in Landmark Media Deal

>Lord Rothermere’s Daily Mail and General Trust has obtained £500 million in financing to acquire the Telegraph, according to recent reports. The deal, structured in two instalments, represents a significant step forward in the British media landscape and is subject to regulatory and governmental review before completion.

The transaction begins with an initial payment of £400 million, which will be funded through increased debt from the group’s longstanding lender NatWest and existing corporate reserves. The remaining £100 million is expected to be settled within two years, most likely utilising a DMGT bond with Deutsche Bank that matures in 2027. Information regarding the financing structure is to be submitted to Culture Secretary Lisa Nandy, who will review the details before deciding whether to allow the deal. The Competition and Markets Authority and Ofcom are also set to evaluate the offer to ensure compliance with British media ownership laws.

Control of the Telegraph has recently changed hands. RedBird IMI, a joint venture between the US private equity firm RedBird Capital Partners and the United Arab Emirates’ International Media Investments, assumed control in 2023. However, new British government legislation restricting foreign state ownership of newspaper assets resulted in the group being obliged to divest its interest.

Lord Rothermere has long sought to add the Telegraph to a portfolio that already includes Metro, the i Paper, and New Scientist. DMGT currently handles advertising contracts for the Telegraph titles. The proposed takeover pledges to maintain editorial independence between the Telegraph and Mail teams, with investment committed to global brand development and assurances intended to bring stability for Telegraph staff who have endured an extended sale process.

Competing offers remain possible; Dovid Efune, owner of the New York Sun, is reportedly considering a bid with backing from David Smith, the proprietor of the Baltimore Sun, and a £100 million investment from Brexit supporter Jeremy Hosking. Although Efune’s earlier interest was delayed by funding issues, rival bids could emerge in the final stages of the transaction.