Latest news with #RedbirdCapital
Spectator
3 days ago
- Business
- Spectator
Inside the Lords battle on foreign media ownership
After a two-year impasse, the future of the Daily Telegraph could be resolved shortly. A £500m deal has been struck for US firm Redbird Capital to take control of the Telegraph Media Group, with state-backed Abu Dhabi investment vehicle IMI among investors. But a fresh challenge has arisen in the House of Lords. Peers are threatening to block minister's efforts to change the law to give foreign companies a greater stake in British media outfits – up from the existing five per cent to 15 cent. This is a necessary legal change to allow the Telegraph sale to go ahead. A 'fatal motion' will be held in the Lords on Tuesday; if passed, it would kill the government's plans. It is a device seldom wielded by peers, having been last used in 2012. But opponents are growing increasingly confident that the 'fatal motion' could succeed. Two separate fronts have opened up in the Lords. The first is led by Liberal Democrat peer Lord Fox, who tabled the motion. Lib Dem whips are understood to be pulling out all the stops to maximise turnout, including facilitating the attendance of their older peers who do not vote regularly. Their argument is simple: the power of the free press should not be sold to overseas companies susceptible to foreign government influence. The hope is that a sufficient number of Tory and Crossbench peers will vote it down. The second front is led by the cross-party Inter Parliamentary Alliance on China (Ipac) and its supporters like Lord Alton. Their focus is more directly on the Telegraph sale. Sir Iain Duncan Smith has written to Lisa Nandy, the Culture Secretary, arguing that a Foreign State Intervention Notice (FSNI) be issued in this case. A legal opinion by Tom Cross KC details alleged links between Redbird Capital's chairman John Thornton and the Chinese state, including his advisory roles on Beijing's sovereign wealth fund. Sir Iain argues that this is compelling evidence for Nandy to 'adhere to your statutory duty and issue a FSIN without delay.' Both groups are seeking to influence their colleagues across the House. Given the government's lack of a majority, the hope is that a sufficient number of Tory and Crossbench peers will vote it down. Tory whips are expected to vote against the fatal motion, though their colleagues will not be whipped to follow suit. Lord Forsyth, the respected chair of the Association of Conservative Peers, is expected to vote for the motion; others will likely follow his lead. One opponent notes that the Conservatives voted for fatal motions that successfully halted government legislation when they were last in opposition before 2010. A separate 'motion of regret' has been put down by Baroness Stowell, the former Leader of the House. Some supporters of the fatal motion fear it could frustrate their efforts, with wavering peers potentially voting for Stowell's amendment rather than Fox's. The government will argue that a statutory instrument can close the loophole whereby multiple states can each own 15 per cent of any publication. But their critics will counter that this is insufficient and will not stop the Telegraph deal from going ahead.
Forbes
13-06-2025
- Business
- Forbes
British-American Billionaire In Talks For Investment In Telegraph Newspaper
Rita Ora and Len Blavatnik attend the Warner Music Pre-Grammy Party at the NoMad Hotel in 2019 in ... More Los Angeles, California. Billionaire Len Blavatnik has reportedly been approached by Redbird Capital Partners about making an investment in The Telegraph, one of U.K.'s most influential newspapers. Redbird Capital has initiated talks with Blavatnik about becoming a minority investor in The Telegraph, Sky News reported Thursday, citing two sources close to the situation. The report also stated that no agreement had been reached, and it remained unclear whether one would be. Redbird Capital declined to comment. A spokesperson for Blavatnik's investment firm Access Industries said, 'As a matter of principle, Sir Leonard does not comment on market speculation or on any conversations Access may or may not be having regarding potential investments.' Blavatnik's investments span a range of industries and countries. Forbes estimates his net worth at $25.6 billion, placing him at No. 80 on the Real-Time Billionaires List. He is probably best known these days for investments in businesses like Warner Music, streaming service DAZN, chemicals firm LyondellBassell and energy conglomerate Calpine. Blavatnik was knighted by Queen Elizabeth II for services to philanthropy in 2017. He has given or pledged more than $1 billion to philanthropic endeavors with a particular emphasis on supporting universities, including Harvard, Stanford and Yale. Last week, a cross-party group of parliamentarians urged the government to investigate how Redbird Capital is funding its takeover of the venerable British newspaper, according to a report in The Guardian. The group were said to have sent a letter to culture secretary, Lisa Nandy, expressing their concerns about the risk of 'potential Chinese state influence' within Redbird Capital. They MPs point out that the firm's chairman, John Thornton, has served on the advisory council of CIC, China's sovereign wealth fund, and had high-level meetings with Chinese Communist Party members in recent years. The MPs wrote in their letter there was a lack of transparency regarding the sources of funding for the £500 million ($674 million) acquisition, and they contend that it's 'conceivable, and increasingly likely, that funds could be sourced directly or indirectly from foreign state actors.' But sources close to Redbird Capital confirmed there were no Chinese state funds involved in the proposed acquisition. A consortium of U.K. and U.S. investors will form a new consortium for the deal, led by Redbird Capital. United Arab Emirates-based International Media Investments (IMI) is expected to be a minority investor, subject to new legislation that's currently progressing through parliament. The talks are still ongoing, the sources indicated, so no new deal structure has been put into place and submitted for government approval yet. The Telegraph had been the subject of a two-year takeover saga that began when the Conservative-leaning newspaper was seized by Lloyds bank after the Barclay family failed to repay debts of more than £1 billion. A joint venture between Redbird Capital and IMI effectively gained control of The Telegraph in 2023, after providing a £600 million loan to the Barclay family. But the Conservative government at the time blocked the deal when it adopted new regulations preventing foreign states from taking ownership of the press. Blavatnik is a dual citizen of the U.S. and the U.K. He was born in Ukraine and raised north of Moscow, before he immigrated to the U.S. in 1978. He studied computer science at Columbia University, and later earned an M.B.A. from Harvard. He started his New York-based investment company, Access Industries, in 1986. Blavatnik's fortune can be traced back to the chaotic post-Soviet days, when he made a series of shrewd investments through partnerships with various Russian moguls, including Viktor Vekselberg (net worth $9 billion) and Mikhail Fridman (net worth $14.9 billion). The billions he earned through privatized factories and oilfields was then used the proceeds to invest in companies and buy assets in the West. His most attention-grabbing acquisition was Warner Music, which he bought for $3.3 billion at the height of the industry's turmoil in 2011. He took the company public on the Nasdaq in June 2020 at quadruple the value.
Forbes
23-05-2025
- Business
- Forbes
U.S. Investment Giant To Buy Britain's Telegraph Newspaper For $674 Million
Redbird Capital Partners has reached an agreement to acquire The Telegraph, one of Britain's oldest and most influential newspapers, in a £500 million ($674 million) deal. The Conservative-leaning newspaper had been the subject of a two-year takeover saga that began when The Telegraph and The Spectator magazine were seized by Lloyds bank after the Barclay family failed to repay debts of more than £1 billion. Redbird IMI, a joint venture between Redbird Capital and United Arab Emirates-based International Media Investments (IMI), effectively gained control of the titles in 2023, after providing a £600 million loan to the Barclay family. But the Conservative government at the time blocked the acquisition by adopting new regulations preventing foreign states from taking ownership of the press. Redbird Capital said Friday that it would become the 'sole control owner' of The Telegraph, and the firm is in talks with U.K.-based investors about joining the group as minority shareholders. Redbird Capitals also said IMI will participate as a minority investor subject to ongoing legislation on foreign ownership. IMI is controlled by Sheikh Mansour bin Zayed Al Nahyan, the vice-president of the UAE and owner of Manchester City football club. Last week, the current Labour government announced plans to allow foreign states to own up to 15% of British newspapers. Culture Secretary Lisa Nandy said the change will limit the scope for foreign state control or influence of news organizations while still providing greater flexibility in seeking investment that supports their long-term sustainability. Other media owners were reportedly in talks to acquire The Telegraph, including the British-born owner of The New York Sun, Dovid Efune, who was still seeking support for his bid on Friday afternoon. Efune pointed out in an article that was shared on X that Redbird Capital still has significant hurdles to overcome, and no final agreements are in place. He claims that his offer for The Telegraph is 'within sight of the finish line, with the bulk of the needed funding committed.' Efune has assembled what he describes as a 'distinctly British' bid for The Telegraph, which includes the backing of financier Jeremy Hosking and former Conservative cabinet minister Nadhim Zahawi. 'Our acquisition group is also distinctly devoted to journalism,' Efune wrote in the article. 'We don't come with a team of financial engineers or restructuring gurus.' 'I would urge all of The Telegraph's stakeholders to hold on just a little longer and make known your support for the British bid,' he added. Gerry Cardinale, founder and managing partner of Redbird Capital, said the acquisition marks the beginning of a 'new era for The Telegraph' as he seeks to grow the brand in the U.K. and internationally. He plans to invest in the newspaper's technology and expand its subscriber base. 'We believe that the UK is a great place to invest, and this acquisition is an important part of Redbird's growing portfolio of media and entertainment companies in the U.K.,' Cardinale said. Cardinale founded Redbird Capital in 2014. The firm, which invests in sports, media and financial services companies, said it currently has $12 billion in assets under management. Redbird Capital owns the Italian football club AC Milan and has an investment in Fenway Sports Group, the owner of the Boston Red Sox baseball team and Liverpool Football Club. The firm also has a stake in Skydance Media, which is currently in the process of merging with TV and film giant Paramount Global.
Yahoo
23-05-2025
- Business
- Yahoo
Telegraph sale 'agreed in principle' after two-year ownership impasse
A £500m deal to end the two-year ownership impasse at the Daily Telegraph has been agreed "in principle", it has been announced. A consortium led by US firm Redbird Capital was set to take control of Telegraph Media Group (TMG), with state-backed Abu Dhabi investment vehicle IMI among the investors. The pair's original joint venture, known as RedBird IMI, had originally agreed to buy the Telegraph titles in 2023. But prospects for a deal were held up by the previous Conservative government's subsequent ban on foreign state ownership of UK newspapers. Money latest: That ban was based on fears around editorial independence, but the rules were relaxed earlier this month by the current government which said a holding of up to 15% was acceptable. It is understood that UK-based media investors would be among the proposed owners within the consortium. Sky News reported on Monday that the Daily Mail's owner had been in talks over involvement. The Telegraph newspaper itself reported that regulatory hurdles remained - a factor that could yet scupper completion of the deal. Anna Jones, TMG chief executive, said: "Telegraph Media Group is an award-winning news media organisation, with exceptional journalism at its heart, supported by leading commercial expertise, a commitment to innovation and a laser focus on data to drive strategy. "RedBird Capital Partners have exciting growth plans that build on our success - and will unlock our full potential across the breadth of our business." RedBird, whose other UK interests include a 10% stake in the US group behind Liverpool FC, said its growth strategy would include "capital investment in digital operations, subscriptions and journalism". Its statement continued: "RedBird will build on the strong financial foundations established by the current management team and will work with them to grow the brand internationally, with a focus on the United States where RedBird has a strong strategic presence across news, media and sports. "Together, RedBird and TMG senior leadership will work to develop new content verticals in areas such as travel and events to maximise the commercial opportunities from a growing international and mass affluent subscriber base." Redbird founder Gerry Cardinale added: "This transaction 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. "We believe that the UK is a great place to invest, and this acquisition is an important part of RedBird's growing portfolio of media and entertainment companies in the UK."
Sky News
23-05-2025
- Business
- Sky News
Telegraph sale: 'Preliminary deal' to end two-year ownership impasse
A "preliminary" deal to end the two-year ownership impasse at the Daily Telegraph has ben agreed, according to the newspaper. It reported on Friday that a consortium led by US firm Redbird Capital was set to take control. Prospects for a deal were understood to have been held up by the previous Conservative government's ban on foreign state ownership but those rules were relaxed earlier this month. This breaking news story is being updated and more details will be published shortly. Please refresh the page for the fullest version.
