Daily Mail Owner to Acquire Telegraph Newspapers in MultiMillion Pound Deal

Lord Rothermere’s Daily Mail and General Trust is finalising a major acquisition of the Telegraph newspapers, offering £500 million in a two-part transaction. The first payment of £400 million will be made upfront, with a further £100 million scheduled for payment after two years. This deal, predominantly financed by loans from NatWest and existing company reserves, is expected to be officially announced on Monday.

Plans are under way for the integration of Telegraph operations into the DMGT group, which already owns the Daily Mail, The i Paper, Metro, and New Scientist magazine. Sources suggest that up to £100 million in annual savings are anticipated by combining back-office functions and relocating Telegraph employees from central London to the DMGT headquarters in Kensington. However, comments from those close to the matter indicate that the precise details of organisational changes have not been determined at this early stage.

This development follows prolonged uncertainty surrounding the Telegraph’s ownership. In June 2023, Lloyds Bank seized control of the titles from the Barclay family in an effort to recoup debts exceeding £1 billion. An initial auction saw RedBird IMI, a joint venture backed by Abu Dhabi investors and US-based RedBird Capital, attempt to purchase the related credit from Lloyds. Government intervention blocked this deal due to concerns about foreign state influence on a prominent British news outlet.

Subsequent efforts to sell the Telegraph attracted bids as low as £350 million, reflecting diminished confidence in the asset’s stewardship. RedBird Capital then agreed to a £500 million deal to buy the newspaper from RedBird IMI, though the transaction was ultimately abandoned because of ongoing concerns about editorial control and external influences.

DMGT’s current purchase of the Telegraph comes amid speculation that regulatory scrutiny may force the group to divest some publications to prevent competition issues. Despite this, Lord Rothermere is reportedly seeking to complete the acquisition without disposing of existing assets. Bank loans from NatWest, secured under standard terms without collateral, will provide much of the capital required for the initial payment.

The acquisition aims to deliver greater operational efficiency and financial stability to the Telegraph group, closing a period of protracted negotiations and speculation over the newspaper’s future ownership. Both DMGT and NatWest have declined to comment on the specifics of the transaction, while RedBird IMI did not respond to requests for statements.