The German group Axel Springer has reached an agreement to buy the British newspaper The Telegraph for around 575 million pounds, according to the Financial Times, citing people familiar with the operation. The acquisition frustrates the attempt by the Daily Mail and General Trust (DMGT) group, owner of the Daily Mail, which was close to taking control of the historic British conservative newspaper. The operation will mean that one of the oldest and most politically influential newspapers in the United Kingdom will pass into the hands of a German group that, furthermore, has been actively expanding across Europe in the last couple of years. The operation must still be approved by the regulator. It is the latest attempt by the German publisher, with interests in the United States, to buy or expand politically-oriented media across Europe.
A key newspaper for the British conservative establishment
Founded 168 years ago, The Telegraph has historically been one of the most influential media outlets within the British establishment and the conservative political sphere. According to the Financial Times, the possibility that the newspaper -often nicknamed “Torygraph” due to its closeness to the Conservative Party- passes for the first time into German ownership could provoke significant reactions in Westminster. The Financial Times explains that the owner of the Daily Mail, Lord Rothermere, had been close to closing the purchase of the Telegraph group, an operation that would have reinforced his ambition to create one of the largest media conglomerates on Fleet Street.
However, Axel Springer presented a stronger offer, which ended up tipping the operation in its favor, which also raises doubts about the profitability of the operation and, in general, for the German media group, which already owns, in addition to Politico, Bild, Die Welt and Business Insider, reference brands German and American.
A sale marked by years of financial disputes
The sale process of the Telegraph began three years ago, when Lloyds Banking Group took control of the media group after the unpaid debts of the Barclay family, which had been owner of the newspaper since 2004.
Subsequently, the RedBird IMI fund, backed by United Arab Emirates capital, tried to take control of the newspaper, but the British Government blocked the operation due to concerns about the influence of a foreign state-backed fund. Now RedBird IMI seeks to definitively exit the shareholding.
The operation still must overcome regulatory controls
Despite the agreement, the purchase will still have to go through the scrutiny of British regulators, including Ofcom and the Competition and Markets Authority. These authorities will evaluate the impact of the operation on the British media market.