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The £500mn sale of the Telegraph to US private equity firm RedBird has collapsed, throwing the future of the newspaper into question as it enters its third year without an owner.
RedBird is set to walk away from the deal given regulatory uncertainty and in the face of sustained negative commentary from the pages of the Telegraph itself, according to two people familiar with the situation.
The Telegraph has recently reported on alleged links between the US fund manager and the Chinese state. Despite being denied by RedBird, the reports have led to politicians in the House of Lords demanding extra scrutiny of the deal.
RedBird, led by former Goldman Sachs banker Gerry Cardinale, has been spearheading a deal to buy the Telegraph since 2023.
A previous transaction backed by Abu Dhabi state-owned investor IMI fell apart after an outcry from politicians over the risk of overseas state influence on British national newspapers.
RedBird then decided to continue with the deal, with a minority stake owned by IMI and new equity from Lord Rothermere’s DMGT, which owns the Daily Mail, and billionaire Sir Leonard Blavatnik.
This is a developing story
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