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Gerry Cardinale’s Redbird Capital Partners plans to control the telegraph to end the long two-year sale of the UK newspaper group, people explained the issue.
Under the still-valued plan, the US private equity firm will cut its interest in Abu Dhabi-based IMI to overcome objections from the UK government.
Redbird added that despite the US fund manager becoming a major investor, he had met with many UK-based media and investment groups to join the consortium.
Redbird also spoke with potential partners who have shown interest in newspapers in the past, including DMGT from Lord Rothermere, who owns rival Daily Mail.
The intervention by Cardinale, which is set to take over media group Paramount alongside David Ellison’s independent Hollywood film studio Skydance, will be one of the longest-running sales in British history.
A Redbird spokesman said, “Gerry Cardinale’s Redbird Capital Partners assesses the possibility of becoming the sole control owner of the Telegraph Media Group.” DMGT declined to comment.
The newspaper sale began two years ago when Lloyd’s banking group seized control as a result of outstanding debts by the Berkeley family, which owned the telegraph since 2004.
The transaction that Redbird Imi, a joint venture between a US private equity firm and an Abu Dhabi investor, attempted to buy the telegraph media group was subsequently blocked by the former British Conservative government for around £550 million due to concerns over the handing over control of a powerful newspaper to the Foreign State Support Fund.
Redbird Imi is in talks with other potential buyers, including a group that includes Chelsea FC co-owner Todd Boehly and British newspaper veteran David Montgomery. New York Sun owner Dovid Effine was also in consultation with new investors to support a new bid for the newspaper, according to people close to the consultation.
However, given that he already partially manages the newspaper at IMI, if he decides to move on, Cardinale will probably be in the driver’s seat for a contract.
Redbird manages $12 billion in assets across its global portfolio of sports, media, entertainment and financial services companies. Redbird Imi is advised by Boutique Investment Banking Advisers Robey Warshaw and Raine.
Under the deal last year, IMI injected three-quarters of the money, with Redbird contributing to the rest. Redbird Imi – run by former CNN chief Jeff Zucker – wants to at least get back the money he spent on the contract.
In past rival media groups, private equity investors and wealthy individuals, including conservative peers Sachai Lord, have expressed interest in the newspaper.
