Axel Springer CEO Mathias Döpfner. Picture: Robert Downs/INMA
German newspaper group Axel Springer has agreed a deal to buy The Telegraph for £575m in cash.
The deal trumps a previous agreement signed in November between current owner Redbird IMI and Daily Mail owner DMGT, which had planned to pay £400m upfront and a further £100 within two years.
Axel Springer chief executive Mathias Döpfner said The Telegraph has “massive growth potential” and he wants to “help it become the most read and intellectually inspiring center-right media outlet in the English-speaking world”, promising investment.
Scroll down for Döpfner’s full statement
Axel Springer initially expressed an interest in taking part in the auction for The Telegraph in 2023. More recently it was reportedly involved in the preparations for a bid by New York Sun publisher Dovid Efune but has agreed the new deal without his involvement. It thanked Efune “for his essential support and assistance” in a statement.
Axel Springer owns Politico, Business Insider and Axios as well as German newspapers Bild and Die Welt.
The Telegraph acquisition would make Axel Springer a major player in UK media: Politico and Business Insider each have around 100 staff based in the UK and have significant UK audiences.
Axel Springer’s major shareholders are CEO Döpfner, the Springer family and private equity investor KKR.
The publisher tried to buy The Telegraph last time it was up for sale in 2004 but was beaten by the Barclay family – from whom Lloyds Banking Group seized the news group in June 2023 over £1bn they owed in debt.
Döpfner said the new deal means Axel Springer’s “dream comes true”.
The DMGT acquisition of The Telegraph was on hold while it underwent public interest and competition investigations requested by the UK Government.
If the deal went through, DMGT would have owned more than 50% of the daily UK newspaper market.
An Axel Springer takeover is less likely to have the same plurality concerns as the publisher has a much smaller footprint in the UK. Axel Springer said it looked forward to having discussions with the Department for Culture, Media and Sport.
A Redbird IMI spokesperson said: “Following a swift and efficient negotiation, we are pleased to have reached an agreement with Axel Springer to purchase Redbird IMI’s interest in the Daily Telegraph newspaper.
“With the strength of their commercial offer and a straightforward regulatory path to ownership we believe that Axel Springer is well placed to take The Telegraph forward into its next chapter.
“Our team is now working closely with the UK Government to obtain the necessary approvals to finalise this transaction.”
A spokesperson for DMGT said: “DMGT confirms that RedBird IMI has advised it has entered into an agreement with Axel Springer for the potential takeover of the Telegraph Media Group.
“We have worked hard to complete the acquisition of the Telegraph and were confident that the organisation would have thrived under our long-term stewardship. We were optimistic about our plans to invest in its exceptional journalism and secure the future of a respected British media brand.”
“We wish every success to Axel Springer and the Telegraph.
“We believe that the protracted and out-of-date regulatory framework guarantees that UK-based national newspaper groups are at a huge competitive disadvantage in any merger process.”
Redbird IMI acquired The Telegraph in 2023 as it agreed to pay off £1.2bn in debts for the Barclays.
But it was blocked from ownership because it was majority funded by the United Arab Emirates, making it in breach of a new UK law banning foreign states from owning more than 15% of UK newspapers.
Last year US-based private investment firm Redbird said it would buy The Telegraph in a new £500m deal with IMI owning no more than the permitted 15%. DMGT was also involved as an investor.
However Redbird withdrew its bid , which still had not received Government approval, in November because the process was taking so long and it was receiving negative publicity from The Telegraph itself. That was when DMGT stepped in as the next potential owner.
Axel Springer has a unique corporate constitution which states:
“We stand up for freedom, free speech, the rule of law, and democracy.
“We support the right of existence of the State of Israel and oppose all forms of antisemitism.
“We advocate the alliance between the United States of America and Europe.
“We uphold the principles of a free market economy.
“We reject political and religious extremism and all forms of discrimination.”
Full statement from Axel Springer chief executive Mathias Döpfner:
“Axel Springer was founded in 1946 under a British press licence. He built his company inspired by the tradition of Fleet Street. The Telegraph was his North Star.
“More than 20 years ago, we tried to acquire The Telegraph and did not succeed. Now our dream comes true. To be the owner of this institution of quality British journalism is a privilege and a duty.
“We want to grow The Telegraph, while preserving its distinctive character and legacy, to help it become the most read and intellectually inspiring centre-right media outlet in the English-speaking world. The Telegraph stands for freedom, personal responsibility, democratic values and a belief in open societies and market economies. These convictions closely align with our Axel Springer essential values.
“These essentials do not limit editorial freedom and independence. They transparently define our societal values. Editorial independence is sacrosanct at Axel Springer. We believe that the best way to safeguard that is through financial and economic success.
“We see massive growth potential for TMG. Technological excellence and transformation with the best artificial intelligence tools is mission critical for this. We look forward to working with the editorial teams led by Chris Evans and Allister Heath and the management team led by Anna Jones.
“We are aware that the amazing journalists and employees at TMG have been operating in an extended period of uncertainty. That is never easy. We want to bring that uncertainty to an end as soon as we can and welcome you into Axel Springer.”
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