Axel Springer acquires Telegraph Media Group for £575 million

Investing.com - German media company Axel Springer announced on Friday that it has reached an agreement with RedBird IMI to acquire Telegraph Media Group for £575 million in cash.

This transatlantic family media company said the deal would preserve the integrity of this traditional media brand while providing a platform for growth and expansion into other regions. Both parties plan to discuss the transaction in the coming weeks with the Department for Culture, Media and Sport and other stakeholders.

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Axel Springer CEO Mathias Döpfner said the company attempted to acquire The Telegraph over 20 years ago but was unsuccessful. “Becoming the owner of this high-quality British news organization is both a privilege and a responsibility,” Döpfner said.

“We aim to grow while maintaining The Telegraph’s unique character and tradition, helping it become the most read, intellectually inspiring center-right media outlet in the English-speaking world.”

Döpfner noted that Axel Springer was founded in 1946 under UK news licensing, and The Telegraph has always been an inspiration. He stated that editorial independence is sacred and inviolable at Axel Springer, and financial and economic success is the best way to safeguard that independence.

The CEO acknowledged that journalists and staff at Telegraph Media Group have been working through uncertain extension periods. “We hope to end this uncertainty as soon as possible and welcome you to join Axel Springer,” he said.

Axel Springer said it would support investment plans for Telegraph Media Group to make it a leading center-right media outlet in the English-speaking world. The company plans to leverage the expertise of its media brands POLITICO and BUSINESS INSIDER to expand Telegraph into the U.S. market.

Telegraph Media Group will gain Axel Springer’s experience in developing journalism in the digital and artificial intelligence space, as well as business expertise in digital advertising, subscriptions, and events.

RedBird IMI said it was pleased to reach an agreement with Axel Springer after rapid negotiations. “With its strong commercial offering and direct regulatory ownership path, we believe Axel Springer is capable of leading Telegraph into the next chapter,” the company stated.

Both parties believe this transaction fully complies with the UK’s foreign influence regime. LionTree served as financial advisor to Axel Springer, and Freshfields as legal counsel.

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