RedBird IMI, whose operations are directed by RedBird Capital Partners, based in Dallas, has reached an agreement to purchase the Telegraph Media Group. This long time publisher of the Daily Telegraph is worth $674 million (£500 million). This merger, which would supposedly boost competition and innovation inside the combined company, is awaiting approval from British regulators.
As many of you know, Gerry Cardinale is the founder of RedBird Capital Partners, a US-based investment firm. It’s received national attention for the savvy, strategic investments it’s made in sectors such as sports and entertainment. The consortium prominently includes Sheikh Mansour bin Zayed Al Nahyan. He is a key figure in Abu Dhabi’s ruling family and acts as vice president of the United Arab Emirates. Sheikh Mansour’s investment vehicle, Abu Dhabi’s International Media Investments, will acquire a 49 percent stake in the troubled Telegraph Media Group. This investment is limited to 15 percent.
The deal is a high-profile play for the RedBird and the Telegraph Media Group. At the signing of this deal, Cardinale shared his excitement over the potential this deal could bring, including.
“This marks the start of a new era for The Telegraph as we look to grow the brand in the UK and internationally, invest in its technology and expand its subscriber base.” – Gerry Cardinale
The Telegraph Media Group has also, for 170 years, been one of the great cornerstones of British journalism. This acquisition brings to Gill House an exciting new chapter in its long and storied history. Anna Jones, chief executive of the Telegraph Media Group, expressed her hope for what comes next. She noted,
“RedBird Capital Partners have exciting growth plans that build on our success — and will unlock our full potential across the breadth of our business.” – Anna Jones
RedBird Capital’s previous investments include ownership stakes in notable sports franchises such as AC Milan and the parent company of Liverpool Football Club. Beyond that, they’ve expanded into film production with their investment in Skydance. These varied pursuits signal RedBird’s strategy of not only deepening the diversity of its portfolio but building innovation capacity within its portfolio companies.
The recent purchase of The Spectator by hedge-funder Paul Marshall in September is yet another sign of this media transformation going on in the UK. This latest RedBird acquisition is particularly noteworthy.
