Freshfields and Gibson Dunn lead £575m Telegraph sale to Axel Springer

Freshfields and Gibson Dunn have landed lead roles on Axel Springer’s acquisition of the publisher of The Daily Telegraph, in a £575 million cash deal with owner RedBird IMI.

The publisher Telegraph Media Group (TMG) also owns The Sunday Telegraph, Telegraph Magazine and associated digital business.

The buyer is the German media group behind titles including Politico and Business Insider. The transaction will see it take ownership of one of the UK’s best known newspaper brands following a lengthy sale process that attracted political scrutiny.

Deal agreed

Axel Springer said the acquisition would allow it to invest in the Telegraph while preserving the publication’s editorial character.

Chief executive Mathias Döpfner said: “More than 20 years ago, we tried to acquire The Telegraph and did not succeed. Now our dream comes true.” He added: “To be the owner of this institution of quality British journalism is a privilege and a duty.”

The company said it sees significant growth potential for the title, including expansion into the US market and further investment in digital publishing and AI driven media tools.

Ownership saga

The deal follows two years of uncertainty over the ownership of the Telegraph titles.

The newspapers were put up for sale in 2023 after Lloyds Banking Group seized control from the Barclay family over more than £1 billion in unpaid debts.

RedBird IMI, a joint venture between US investment firm RedBird Capital and Abu Dhabi backed International Media Investments, subsequently took control of the business but faced political opposition over foreign state influence in British media.

A rival £500 million bid by Daily Mail owner DMGT, represented by Slaughter and May, was facing a government probe over concerns that the deal could affect “plurality of views” in the UK media, creating outsized influence.

Expansion plans

Axel Springer said the acquisition would allow the Telegraph to draw on its experience building global digital media brands including Politico and Business Insider.

The group added that it plans to invest in technology, subscriptions and international expansion as part of its strategy to grow the title’s audience across the English speaking world.

The deal remains subject to regulatory approvals, with the parties expected to engage with the Department for Culture, Media and Sport in the coming weeks.

Advising

Freshfields is advising Axel Springer on the deal, with a team being led by London corporate partner Oliver Lazenby and competition partner Alastair Mordaunt.

Gibson Dunn is advising RedBird IMI. The team includes London partners Robert Dixon, Ali Nikpay, Ben Nunez, Richard Birns, James Chandler and Kavita Davis, and New York-based partner Sean McFarlane.

It is the second major mandate Gibson Dunn has landed for RedBird IMI in a week. The firm is also advising the investment group on the merger of production company All3Media with French group Banijay Entertainment in a deal that will create the world’s largest independent television producer.