European media company Axel Springer has agreed to buy Telegraph Media Group (TMG) in a deal worth £575 million (€663.5 million).
The deal exceeds the £500 million (€577 million) bid proposed by the Daily Mail and General Trust (DMGT). The government had ordered an investigation into that deal on public interest and competition grounds.
TMG owns the Daily Telegraph and Sunday Telegraph, the Telegraph Magazine and its website and app.
Axel Springer's chief executive, Mathias Dopfner, said he wants to "preserve the unique character and heritage" of the Telegraph.
"More than 20 years ago, we tried to buy the Telegraph and failed. Now our dream is becoming a reality," he said, adding that "being the owner of this institution of quality British journalism is a privilege and a duty."
In a company statement, Axel Springer said it would support an investment program in TMG to "develop and expand the business."
The company will also expand Telegraph's reach in the United States, according to the statement.
Axel Springer is a large European media company based in Germany that owns several, including Bild, Die Welt, Politico and Business Insider.
This will be the company's largest acquisition, following the purchase of Politico in 2021 for about $1 billion (850 million euros).
TMG has been without an owner since 2023, due to the debts of the previous owners, the Barclay brothers.
Lloyds Banking Group effectively took back control of the Telegraph after the Barclay family defaulted on secured debts on the media company.
Several attempts to buy the group have failed over the years, writes bbc.
The American investment group, RedBird Capital, had attempted to buy the group twice.
The group paid a £600 million (€692.6 million) loan to Lloyds, effectively taking control of TMG, but the ownership offer was initially rejected by the previous Conservative government, as it was largely funded by Abu Dhabi's IMI group, which belongs to the Abu Dhabi royal family.
After announcing it would buy the newspapers in May last year, RedBird pulled out of the €577m deal in November after it became known that the Labour government would send the deal for regulatory review.
Shortly after that deal fell through, the publisher of the Daily Mail announced it would buy the group for €500 million to €575 million.
But last month, Culture Secretary Lisa Nandy launched an investigation into the Mail's proposed deal over concerns it could affect "pluralism of views" in British media.
The Daily Mail owner said in a statement that he wishes "every success" for Axel Springer and the Telegraph.
But he added that “we worked hard to complete the acquisition of the Telegraph and were confident that the organisation would thrive under our long-term management. We were optimistic about our plans to invest in its exceptional journalism and secure the future of a respected British media brand. We believe that the protracted and outdated regulatory framework ensures that UK-based national newspaper groups are at a significant competitive disadvantage in any merger process.” /Telegraph/
