The influential right-wing British newspaper The Telegraph is being acquired by General Trust PLC (DGMT), the parent company of the Daily Mail, another major UK newspaper. According to the company, a deal worth £500 million (approximately $650 million) has been finalized to purchase its long-time media rival.
The information was reported by Reuters on Saturday. The report said the agreement came just a week after US-based private investment firm RedBird Capital Partners withdrew from its bid to buy The Telegraph.
A source close to RedBird told Reuters that internal conflicts among senior newsroom staff at The Telegraph led the firm to pull out of the auction. Individuals involved in the negotiations said the sale price of the newspaper stands at around £500 million.
The Financial Times reported that the valuation was set to cover the amount spent by the RedBird-led consortium. Parties involved in the deal have now entered final-stage exclusive talks to complete the required documentation and finalize the terms. They expect the process to conclude soon.
Reuters stated that The Telegraph did not respond to a request for comment regarding the sale. A spokesperson for RedBird IMI confirmed that DGMT and RedBird IMI have reached an agreement, which will soon be submitted to the Foreign Secretary for approval.
