LONDON: US investment firm RedBird Capital has pulled out of its £500 million (nearly $657 million) bid to buy the Daily and Sunday Telegraph, ending a protracted struggle over the future of one of Britain’s most prominent media groups.
The move comes after the UK government tightened rules to prevent foreign states from owning newspapers, a concern that was raised with the original Abu Dhabi-backed bid from RedBird IMI. The company’s previous attempt to acquire the titles was blocked after ministers objected to the level of funding from Abu Dhabi–owned IMI Group.
The government later introduced rules limiting foreign sovereign wealth funds to a maximum 15% stake in UK newspapers. A RedBird spokesperson told BBC that the firm remained confident in the Telegraph’s “bright future” and would work to support a solution “in the best interests of employees and readers.”
RedBird has also faced broader questions about the investment it receives from China and Gulf-based backers. IMI Group, which paid off the debts of the Telegraph’s former owners, the Barclay family, said it remained committed to securing a long-term future for the papers and continued to engage with potential buyers.
Media reports said the Telegraph‘s future ownership is once again in limbo, with the newspaper’s editor stating the publication deserves owners who care about journalism.
