In an extraordinary development, Axel Springer is buying the Telegraph. Per Daniel Thomas, Arash Massoudi and James Fontanella-Khan at the Financial Times, the German publisher moved fast to beat out DMGT, the owners of the Daily Mail with a shock bid.
In a statement, Axel Springer chief executive Mathias 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. We look forward to working with the editorial teams led by Chris Evans and Allister Heath and the management team led by Anna Jones.”
Investors RedBird IMI, who previously bought the Telegraph before that was banned on foreign influence grounds added:
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. Our team is now working closely with the UK Government to obtain the necessary approvals to finalise this transaction.
Axel Springer also said it will “back an investment program in TMG to grow and expand the business to enable it to become the leading centre-right media outlet in the English-speaking world”. The company also emphasised that it protects the editorial independence of publications it owns.
Axel Springs Gets Telegraph, Leaving Interesting Approach to Foreign Affairs
“Certainly it is good news for [Telegraph Media Group] TMG relative to DMGT because the Government seemed hostile to that merger on media plurality grounds,” Alice Enders of Enders Analysis told me. “Axel Springer has long sought TMG and the price of £575m reflects that appetite. And TMG will be happier to retain its identity and staff than to undergo “synergies” with DMGT as the owner.”
It is deeply ironic that a pro-European German publisher is taking control of one of the papers that campaigned most vigorously for Brexit. However, as the FT notes, billionaire Döpfner has also criticised the EU and made nice with US vice president JD Vance in recent times. In another foreign policy-related statement, he told the FT:
We support the right of existence of the State of Israel and oppose all forms of antisemitism. We believe in the alliance between Europe and the United States. We stand for a free-market economy and reject extremism and discrimination in any form.
There is still some way to go, with Ofcom and the Competition and Markets authority set to look at the bid. Axel Springer owns Politico and Bild. If the deal goes through, it will be a blow to Lord Rothermere, who was looking to expand his right-wing media empire