RedBird abandons £500m bid for Telegraph, leaving ownership uncertainty

The future of the Daily Telegraph has been thrown back into turmoil after RedBird Capital Partners abandoned its planned £500m takeover of the title.

As first reported by Mark Kleinman at Sky News, RedBird and its Abu Dhabi-based investment partner International Media Investments (IMI) have formally withdrawn their offer to buy Telegraph Media Group, ending months of speculation over a deal that had divided Westminster, the media industry and even parts of the Telegraph newsroom.

In a statement a RedBird spokesman said: “RedBird has today withdrawn its bid for the Telegraph Media Group. We remain fully confident that the Telegraph and its world-class team have a bright future ahead of them and we will work hard to help secure a solution which is in the best interests of employees and readers.”

The withdrawal is the latest twist in a saga that has dragged on for more than two years. The Telegraph’s future was first thrown into doubt when its lenders seized control from the Barclay family, who had owned the paper since 2004. RedBird IMI subsequently provided financing that gave it an option to take ownership, but the plan was blocked amid political and regulatory opposition to foreign state involvement in British media.

In response, a restructured deal was put together involving new backers , including Daily Mail proprietor Lord Rothermere and billionaire Sir Leonard Blavatnik, owner of the sports streaming service DAZN , which would have limited IMI’s stake to 15%. Despite those changes, RedBird’s ambitions have now been derailed once more.

Insiders say growing unease within the Telegraph newsroom about potential foreign influence and the editorial implications of RedBird’s ownership played a key role in the consortium’s decision to withdraw. Tensions reportedly intensified after Telegraph journalists published reporting that explored links between RedBird and Chinese state interests, a move that is said to have angered senior figures at the investment firm.

RedBird’s exit leaves the Telegraph’s ownership question unresolved and opens the door to new bidders. Media observers expect fresh interest from domestic investors and possibly rival newspaper groups, though any sale is likely to face close political and regulatory scrutiny.

The paper remains profitable but faces the same pressures as other legacy titles , falling print sales, volatile advertising revenue and the need to accelerate digital subscriptions. With RedBird gone, attention now turns to whether the Telegraph can find an owner acceptable to both its newsroom and regulators , and one capable of steering it through a fast-changing media landscape.