RedBird Capital pulls £500m bid for Telegraph Media Group amid growing scrutiny over China links.
In a surprise move, RedBird Capital Partners has abandoned its £500 million takeover bid for the Telegraph Media Group (TMG), throwing the future of the Daily and Sunday Telegraph into further uncertainty. The private equity firm's decision comes amidst intense criticism and scrutiny over its alleged ties to China, with many questioning whether it poses a risk to British journalism.
The bid was sparked by IMI's acquisition of TMG in 2023, which led to concerns about foreign ownership of UK newspaper assets. RedBird had proposed a deal that would have seen IMI retain a 15% stake in the business, while other investors including Sir Leonard Blavatnik and Labour Party leader Keir Starmer's ally were set to hold around 10% each.
However, the Telegraph itself has been at the centre of controversy over its potential new owners. A photograph of RedBird Capital chair John Thornton shaking hands with Cai Qi, a senior member of China's Communist party ruling politburo, raised questions about whether the newspaper was being used as a conduit for Chinese influence.
Several human rights and freedom of expression groups have urged Culture Secretary Lisa Nandy to block the bid and launch an investigation into RedBird's ties to China. The groups cited Thornton's involvement with the China Investment Corporation and his previous role as chairman of the Silk Road Finance Corporation, which has been accused of supporting Chinese intelligence operations.
RedBird Capital denied any Chinese involvement or influence in its proposed acquisition of the Telegraph, but the firm's decision to pull out of the bid suggests that it was unable to overcome these concerns. The future of the Telegraph now hangs in the balance, with the business facing uncertainty over whether it will be sold or retained under existing ownership.
The newspaper industry is watching closely as the situation develops, and many are expressing concern about the implications for British journalism. "This process has been challenging and unpredictable but your hard work and continued patience is a credit to you all," said Anna Jones, chief executive of TMG.
In a surprise move, RedBird Capital Partners has abandoned its £500 million takeover bid for the Telegraph Media Group (TMG), throwing the future of the Daily and Sunday Telegraph into further uncertainty. The private equity firm's decision comes amidst intense criticism and scrutiny over its alleged ties to China, with many questioning whether it poses a risk to British journalism.
The bid was sparked by IMI's acquisition of TMG in 2023, which led to concerns about foreign ownership of UK newspaper assets. RedBird had proposed a deal that would have seen IMI retain a 15% stake in the business, while other investors including Sir Leonard Blavatnik and Labour Party leader Keir Starmer's ally were set to hold around 10% each.
However, the Telegraph itself has been at the centre of controversy over its potential new owners. A photograph of RedBird Capital chair John Thornton shaking hands with Cai Qi, a senior member of China's Communist party ruling politburo, raised questions about whether the newspaper was being used as a conduit for Chinese influence.
Several human rights and freedom of expression groups have urged Culture Secretary Lisa Nandy to block the bid and launch an investigation into RedBird's ties to China. The groups cited Thornton's involvement with the China Investment Corporation and his previous role as chairman of the Silk Road Finance Corporation, which has been accused of supporting Chinese intelligence operations.
RedBird Capital denied any Chinese involvement or influence in its proposed acquisition of the Telegraph, but the firm's decision to pull out of the bid suggests that it was unable to overcome these concerns. The future of the Telegraph now hangs in the balance, with the business facing uncertainty over whether it will be sold or retained under existing ownership.
The newspaper industry is watching closely as the situation develops, and many are expressing concern about the implications for British journalism. "This process has been challenging and unpredictable but your hard work and continued patience is a credit to you all," said Anna Jones, chief executive of TMG.
. But seriously, who wants some private equity firm with alleged China ties messing with our free press? 
The whole thing's got me thinking, what if they'd actually taken over and it was all about spreading Chinese propaganda or something? 
It's not like we need another layer of foreign influence in the UK media. I mean, can't we just focus on the Brits covering British news for once? 
just saw that RedBird Capital pulled out of their £500m bid for the Telegraph Media Group and i'm kinda relieved tbh 
dont get me wrong, chinese ties are sketchy but it's also a major newspaper we're talkin about here 
anyway, good on the human rights groups for speakin up tho 
. I mean, who doesn't love a good ol' fashioned Brit newspaper fight? 
. But until they can convince us of that, I'm gonna have to side with the human rights groups on this one 
.
. i mean, what if RedBird was just too much for some people to handle? did they just get cold feet or what? 
And now the Telegraph is just sitting there, wondering what's gonna happen next... it's like they're at the mercy of whoever wants to buy them. 
... I mean, who wants a major UK newspaper linked to China's Communist party? 
. The concerns about foreign ownership of UK newspapers are valid 
, but this whole thing just feels sketchy 
. Can't we just focus on good ol' British journalism without all these international ties? 
. I mean, the Telegraph's got some legit issues with China ties already, but does everyone need to freak out now? 
. Can we move on from this already?