(Updates throughout to change sourcing)
Nov 22 (Reuters) - Daily Mail owner DMGT on Saturday said it has struck a 500 million pound ($650 million) deal to buy the rival newspaper The Telegraph in a tie-up that would create one of the most powerful right-leaning media groups in Britain.
The deal comes a week after U.S.-based private investment firm RedBird Capital Partners withdrew its bid for the Telegraph, one of Britain’s biggest newspapers.
A source close to RedBird told Reuters that sustained internal opposition from senior figures within the Telegraph newsroom had prompted it to walk away.
People close to the talks said the transaction was worth about 500 million pounds. The Financial Times said the price had been set to repay the money spent by the RedBird-fronted consortium.
The parties have entered a period of exclusivity to finalise the terms of the transaction and to prepare the necessary regulatory submissions, which they expect to happen quickly.
The Telegraph did not immediately respond to Reuters’ request for comment.
A spokesman for RedBird IMI said: “DMGT and RedBird IMI have worked swiftly to reach the agreement announced today, which will shortly be submitted to the Secretary of State.”
($1 = 0.7639 pounds)

DMGT

Daily Mail owner DMGT has agreed to a $650 million deal to acquire The Telegraph, forming a major right-leaning media group in Britain. This follows RedBird Capital Partners' withdrawal from bidding due to internal opposition at The Telegraph. The deal is in an exclusivity period for finalizing terms and regulatory submissions.

Daily Mail owner strikes $650 million deal for Telegraph