Telegraph sold to Axel Springer for £575m

The Telegraph has been acquired by the German publisher Axel Springer for £575m in a surprise raid that brings a potent new force to Fleet Street.

Mathias Döpfner, Axel Springer’s chief executive and controlling shareholder, has gatecrashed a planned takeover by the owner of The Daily Mail, Lord Rothermere, to end two and a half years of debilitating uncertainty.

He has bought security over The Telegraph, which can be readily converted into full ownership, from RedBird IMI, the UAE-backed vehicle which attempted to take control in late 2023.

The all-cash transaction marks by far Axel Springer’s biggest move into the UK market and a significant step towards Mr Döpfner’s strategy of expansion in the English-speaking world. The company previously unsuccessfully bid for The Telegraph in 2004 and for the Financial Times in 2015.

Axel Springer had revenues of €3.8bn and reported a profit of €738m last year, making it one of the world’s largest news publishers.

Mr Döpfner said: “Axel Springer was founded in 1946 under a British press licence. He built his company inspired by the tradition of Fleet Street. The Telegraph was his North Star.

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

“We want to grow The Telegraph, while preserving its distinctive character and legacy, to help it become the most-read and intellectually inspiring centre-right media outlet in the English-speaking world. The Telegraph stands for freedom, personal responsibility, democratic values and a belief in open societies and market economies.”

Axel Springer’s international portfolio also includes Politico, Business Insider and the newsletter publisher Morning Brew. None has a significant share of the UK news market, meaning the takeover of The Telegraph is unlikely to raise competition or media plurality concerns.

The German publisher has an unusual corporate constitution which guarantees its support for European integration and the state of Israel. However, it has not applied this constitution to its non-German assets.

A spokesman for RedBird IMI, which was blocked from taking control by a ban on foreign state ownership of newspapers, said: “Following a swift and efficient negotiation, we are pleased to have reached an agreement with Axel Springer to purchase RedBird IMI’s interest in the Daily Telegraph newspaper.

“With the strength of their commercial offer and a straightforward regulatory path to ownership we believe that Axel Springer is well placed to take The Telegraph forward into its next chapter.”

It remains possible that the Government will investigate Axel Springer’s takeover for its impact on the public interest, a process that would be likely to take months. The Telegraph has been in limbo since June 2023, when the Barclay family lost control to Lloyds Banking Group over their unpaid debts.

Lord Rothermere agreed to pay £500m for security over The Telegraph in November last year. The Government gave permission for the rights to be transferred last month.

However, DMGT, Lord Rothermere’s holding company, did not make a payment and its exclusivity lapsed, opening the door to Axel Springer.

DMGT did not fully commit to the acquisition after Lisa Nandy, the Culture Secretary, launched an investigation last month over concerns the deal could damage media plurality.

That had been expected given the planned combination of The Telegraph and The Daily Mail under the same owner. However, the growing potential for a Labour lurch to the Left and a brewing press regulation push raised the risk that the deal could be tightly restricted or blocked, and leave Lord Rothermere facing a loss.

DMGT was contacted for comment.