A major player in the UK newspaper industry such as the Daily Mail agrees to buy the Telegraph
In a move that will shake up Britain’s newspaper industry, the owners of the Daily Mail have confirmed they are buying the rival newspaper in a deal worth GBP500 million (US $650 million).
If completed, it will make DMGT, the owner of the Daily Mail, one of the most powerful media companies in the UK – which is sure to increase the hackres of antitrust watchdogs in the country.
The announcement comes a week after the red money struck a deal to buy the daily Telegraph and Sunday for GBP500 million (US$650 million).
The BBC reported that redbird’s previous attempt to buy the telegraph was also opposed by politicians as it was largely funded by Abu Dhabi’s Mili, owners of products such as weather news, CNN Business Arabic News.
“The change in the law means that foreign treasury funds can take a maximum stake of 15 percent in newspapers or at certain times.
DMGT transactions are subject to the UK’s foreign influence regime as there is no foreign investment or capital in the capital formation.
In a statement issued on Saturday, DMGT said it has signed an agreement with Redbird Mei for the acquisition of Telegraph Media Group (TMG).
The parties have now entered a pre-agreed period to finalize the terms of the transaction and prepare the necessary regulatory submissions, which are expected to happen soon.
The DMGT added: “We believe the proposed acquisition will provide greater certainty and confidence to TMG staff and ensure that the Telegraph’s unique journalism can thrive in the future and on a global scale.
“The Daily Telegraph would join the DMGT’s independent and diverse media strikes, including the Daily Mail and the Sunday Mail, MOSTO, the New Sciest.”
Adding that the daily Telegraph will remain independent from other titles in the group, DMGT said it plans to invest heavily in TMG with the aim of accelerating its international expansion. The focus will be on the USA, where the Daily Mail is already successful, with established editorial and commercial operations.
Lord Rothermere, chairman, Dmgt, commented: “I have long had a passion for British journalism and entertainment and have had an important history and have played a significant role in shaping the national debate over many decades.
“Chris Evans is an excellent editor, and we intend to give him the resources to invest in the newsroom. Under our ownership, the Daily Telegraph will be a global brand, as the Mail has all of them.”
