After three years, a series of failed bids stretching from the United States to Abu Dhabi, internal rebellions and even changes in the law, it should come as no surprise that the tortured sale of the Telegraph has taken another spectacular turn with a blockbuster bid from media giant Axel Springer.
It has torpedoed Daily Mail owner Lord Rothermere’s long-cherished dreams of taking over the Daily Telegraph and Sunday Telegraph and beginning the next chapter in his family’s love affair with the British press.
It will also put the newspaper, often called “the Torygraph” because of its influence within Britain’s Conservative Party, into the hands of a German publishing powerhouse.
Rothermere had made no secret of his desperation to buy the Telegraph and had worked with banks to raise money. However, his candidacy raised questions about media plurality and concentration of ownership. Those concerns, shared by Culture Secretary Lisa Nandy, led to their proposed deal being handed over to regulators for months of scrutiny.
On top of that, many industry sources were left baffled by how anyone with even Rothermere’s personal wealth could raise the £500m demanded by RedBird IMI, the UAE-backed vehicle forced to sell the titles after a change in the law on state ownership of newspapers.
Axel Springer’s offer raises fewer questions, but will also need government approval before being confirmed. Their £575m offer is a cash offer. The media giant, which already owns Politico, Business Insider and German newspaper Bild, owns no other major UK-focused media assets.
One of the remaining mysteries is why it has taken Axel Springer so long to achieve his knockout goal. His cash offer could have ended the saga much sooner.
His interest in the titles emerged recently, when he joined a consortium led by Dovid Efune, the British owner of the New York Sun, which had been chasing the Telegraph’s titles. In recent days, Axel Springer decided to go it alone.
The next question is what the company plans to do with the securities. In recent years, they have been widely seen as moving further to the right, as Nigel Farage’s UK Reform has gained momentum and Donald Trump has returned to the White House.
After internal revolts over potential previous owners (including RedBird IMI and then a restructured deal led by US fund RedBird), Mathias Döpfner, the billionaire CEO of Axel Springer, has already begun a well-advised charm offensive.
He said that “our dream comes true” with the purchase, after the previous failed attempt. When Axel Springer founded his media empire in 1946, Döpfner said, the Telegraph was “his north star.” He also praised the newsroom, including current editor Chris Evans.
The Telegraph is promised editorial independence, transformation with artificial intelligence tools and investment to make it “the leading centre-right media outlet in the English-speaking world”. However, Döpfner also promises to preserve the “distinctive character and legacy” of the titles, which have always been steeped in conservative party politics and intrigue.
It remains to be seen how the new European ownership will be received by a largely Eurosceptic public. “Red-faced Brexiteers across Surrey are having fits,” said a source close to the saga. “It would take a heart of stone not to laugh.”
