A private equity firm, CVC Capital Partners, is preparing a bid to acquire The Telegraph newspaper group, following the withdrawal of Daily Mail owner Lord Rothermere from the bidding process last week. This move comes after a proposed takeover by an Abu Dhabi-backed fund was blocked earlier this year.
The Telegraph has been embroiled in an ownership crisis since last year. The Barclay family, the previous owners, were forced to put the media group up for sale to settle debts with Lloyds Bank. This led to a lengthy process that culminated in the investment fund RedBird IMI agreeing to purchase the business for approximately £600 million, also taking on £600 million in related debts.
However, the deal faced obstacles. Earlier this year, the Conservative government intervened to block the Abu Dhabi-backed RedBird IMI fund from acquiring the newspaper group. This intervention has left The Telegraph seeking a new buyer, with CVC Capital Partners emerging as a key contender.
CVC Capital Partners, a Luxembourg-based private equity and investment advisory firm, manages around £156 billion in assets and invests in over 130 companies worldwide, including notable sports brands such as the Six Nations and La Liga. Their entry into the bidding process marks a significant moment, as it would make The Telegraph the first UK news outlet owned by a private equity group.
Despite CVC’s interest, the plans are not yet finalised, and there is no certainty that a formal bid will be made. The deadline for initial proposals is set for the end of this week, leaving little time for prospective buyers to make their intentions clear.
Lord Rothermere’s withdrawal from the race was driven by concerns that the Labour government would object to the purchase, citing a “heightened risk of a protracted regulatory process.” DMGT, led by Lord Rothermere, had been in the running until last week but decided against making a bid due to these regulatory uncertainties.
Other potential suitors have shown interest in acquiring The Telegraph, including National World, the publisher of the Yorkshire Post, and former advertising executive Lord Saatchi. GB News investor Paul Marshall has also been linked with a potential bid, while Rupert Murdoch’s News UK has expressed interest in acquiring The Spectator. However, competition concerns are likely to prevent Murdoch from pursuing The Telegraph titles due to his ownership of The Times.
CVC Capital Partners has declined to comment on the reports, leaving industry observers to await further developments. The outcome of this bidding process will determine the future ownership and direction of one of the UK’s most prominent newspaper groups.
As the deadline for initial proposals approaches, the media industry watches closely to see if CVC Capital Partners finalises their bid and what implications this potential acquisition could have for The Telegraph and the broader media landscape.