Daily Mail leader to shell out £35 million for Telegraph ownership share
A significant move in the UK newspaper industry is afoot, with Lord Rothermere's Daily Mail and General Trust agreeing to purchase a 10% stake in The Daily Telegraph for over £30 million. This investment, worth approximately £350 million in total, positions DMGT as a strategic minority shareholder in the rival right-leaning newspaper.
Banking sources have disclosed that Goldman Sachs is providing advice to DMGT in this transaction. A deal is expected to be finalized shortly, as suggested by insiders.
The latest development comes after RedBird Capital announced plans to take majority control of The Daily Telegraph in May 2025. However, their earlier attempts to secure full ownership were hindered due to regulations concerning foreign ownership.
To circumvent these challenges, RedBird is now seeking UK-based minority investors who understand the print media landscape and are committed to maintaining The Telegraph's editorial values. Lord Rothermere is widely reported as a potential investor along with RedBird, although this involvement may cause complications given his ownership of the Daily Mail and the competitive dynamics between the two media groups.
The ownership of The Daily Telegraph has been in flux since June 2023 when Lloyds Banking Group took control after a dispute with the previous owners, the Barclay family. The ongoing competition to control one of Britain's oldest newspapers continues, with a rival faction vowing to challenge the RedBird-led sale and potentially extend the ownership saga.
Some industry figures have expressed doubts about RedBird's funding sources and the impact on media independence, hinting at further scrutiny and potential delays. The government's decision to set the ownership threshold at 15% follows an intense lobbying campaign by newspaper industry executives hoping to secure a vital source of funding for the embattled industry.
Meanwhile, Dovid Efune, owner of The New York Sun, is still gathering a competing bid for The Daily Telegraph, backed by Jeremy Hosking, a prominent City investor. The Telegraph's sister publication, The Spectator, was sold last year to Sir Paul Marshall, a hedge fund billionaire. Lord Gove, the former cabinet minister, was installed as its editor.
DMGT declined to comment on this developing story. The ongoing ownership battle promises to reshape the UK newspaper industry as it unfolds.
The acquisition of a 10% stake in The Daily Telegraph by DMGT, partially financed by Goldman Sachs, could escalate the war in the UK newspaper industry, with potential implications for business competition and finance. If Lord Rothermere, as a potential minority investor, aligns with RedBird Capital, it might complicate matters due to the competitive dynamics between the Daily Mail and The Daily Telegraph.
