Il Telegraph return to the center ofinvestor attention, following the failure of the acquisition by RedBird IMI three months ago. Among the new offers received by the historic UK newspaper is one led by the former British Finance Minister Nadhim Zahawi. Zahawi, appointed Chancellor by Boris Johnson in the final days of his term as Prime Minister in 2022, has entered into discussions with several billionaires to form a consortium and present aoffer for the Telegraph and the weekly magazine “The Spectator“, also on sale. In this consortium Former Prime Minister Boris Johnson could also join, who has a historic connection with the Telegraph, having worked as a Brussels correspondent before becoming a columnist.
Johnson would have informal talks with Zahawi regarding a possible role in the newspaper. Although a source close to Johnson downplayed the importance of these talks, saying no substantive discussions had taken place, speculation about Johnson as a possible future global editor-in-chief of the Telegraph, first reported by Sky News, could help spark investor interest.
The Telegraph's financial problems
The “Telegraph”, one of most influential conservative newspapers in the UK, has a long history dating back to 1855. For decades, it has been a pillar of British information, with an editorial line strongly oriented to the right. Since 2004, it has been owned by Barclay family, one of the most secretive and powerful dynasties in the United Kingdom, known for their discreet control over numerous businesses.
In recent years, the newspaper, however, has been at the center of growing financial difficulties, culminating with a debt of around 1,2 billion of pounds. This situation led to the British bank Lloyds to take control of the newspaper and put it up for sale in October 2023 to try to recover the debt. A complex operation that has already led to the failure of an almost concluded negotiation.
Redbird's failed takeover
The first sales attempt featured a joint venture between the American fund RedBird and the investment fund of Abu Dhabi, IMI, under the name RedBird IMI. This consortium had radded a preliminary agreement at the end of 2023 for the newspaper acquisition, but the operation raised strong concerns in the British government. In particular, the fears were linked to theEmirati influence on the newspaper, a critical point for a newspaper so closely linked to British conservative interests.
Following these concerns and political pressure, RedBird IMI has decided to withdraw from the deal at the end of April 2024. This withdrawal has reopened the race to acquire the Telegraph, with new players coming forward to buy the prestigious newspaper.
Telegraph sale: the other offers in play
In addition to the consortium led by Zahawi, there are other contenders in the race to acquire the Telegraph. Among these, it stands out Sir Paul Marshall, a hedge fund magnate and owner of the Unherd media group and the GB News television channel. Marshall has the support of American billionaire Ken Griffin, a well-known donor to the Republican Party, and also appears to be one of the main contenders for the purchase of The Spectator.
Another notable participant is David montgomery, a newspaper industry veteran who owns publications such as the Yorkshire Post and the Scotsman. It is not yet clear, however, how Montgomery intends to finance a possible bid.
In addition to these, two unidentified foreign investment groups are still in the running, while other offers, including that of the former advertising mogul Lord Saatchi and the Belgian publisher Mediahuis, were rejected in the first round of the auction. Also Lord Rothermere, owner of the Daily Mail, decided not to participate, fearing strong regulatory scrutiny.
The political implications
The presence of Boris Johnson in this complex affair it's not just an economic question, but also profoundly political. The Telegraph has historically been an ally of Conservative politics, and Johnson's entry as a key figure in its management could have implications for the UK's media and political landscape.
The sale of the Telegraph It should be completed by September 2024, but until then, many unknowns remain about who will ultimately gain control of the newspaper and what the future of its editorial line will be. Johnson's possible involvement could further strengthen the paper's influence in the conservative panorama, continuing a tradition that has seen him at the center of British political dynamics for over a century.
