Germany’s Axel Springer has reached an agreement with RedBird IMI to acquire Telegraph Media Group for £575 million ($766.6 million).
The German-based media company said the acquisition would preserve the Telegraph’s legacy while providing a platform for growth and international expansion. The companies said they look forward to discussing the transaction with the Department for Culture, Media and Sport and other stakeholders in the coming weeks.
Telegraph Media Group publishes the Daily Telegraph, Sunday Telegraph and Telegraph.co.uk.
Axel Springer owns a portfolio of media brands including Bild, Business Insider, Politico and Welt and has a stated mission to “become the leading digital publisher of AI empowered media in the free world.”
In announcing the agreement, Axel Springer CEO Mathias Döpfner described the deal as the culmination of a long-standing ambition.
“Axel Springer founded his company in 1946 under a British press licence. He built his company inspired by the tradition of Fleet Street. The Telegraph was his North Star,” Döpfner said.
“More than 20 years ago, we tried to acquire The Telegraph and did not succeed. Now our dream comes true. To be the owner of this institution of quality British journalism is a privilege and a duty.”
Döpfner said the company plans to expand the publication’s reach while maintaining its editorial character.
“We want to grow the Telegraph, while preserving its distinctive character and legacy, to help it become the most read and intellectually inspiring center-right media outlet in the English-speaking world,” he said.
He added that editorial independence would remain intact under the company’s ownership.
“Editorial independence is sacrosanct at Axel Springer. We believe that the best way to safeguard that is through financial and economic success. We see massive growth potential for TMG. Technological excellence and transformation with the best Artificial Intelligence tools is mission critical for this.”
Döpfner also acknowledged the uncertainty that Telegraph staff have faced during the extended sale process.
“We are aware that the amazing journalists and employees at TMG have been operating in an extended period of uncertainty. That is never easy. We want to bring that uncertainty to an end as soon as we can and welcome you into Axel Springer.”
RedBird IMI said the agreement followed “a swift and efficient negotiation” and that Axel Springer’s offer and regulatory profile made it well positioned to lead the publisher into its next chapter.
“With the strength of their commercial offer and a straightforward regulatory path to ownership we believe that Axel Springer is well placed to take the Telegraph forward into its next chapter,” the company said, adding that it is working with the U.K. government to obtain the necessary approvals needed to complete the transaction.
The companies said they believe the transaction complies with the U.K.’s Foreign State Influence regime.
Axel Springer also acknowledged Dovid Efune, publisher of the New York Sun, for his assistance on the deal. LionTree is acting as financial adviser to Axel Springer, with Freshfields serving as legal adviser.
