LONDON, U.K.: Daily Mail publisher DMGT has moved to consolidate its influence in Britain's conservative media landscape, agreeing to buy The Telegraph in a deal valued at around £500 million (US$650 million).
The company announced the agreement on November 22, saying the acquisition would combine two of the country's most prominent right-leaning news outlets. The deal follows a turbulent bidding process that shifted dramatically last week, when U.S. investment firm RedBird Capital Partners withdrew.
A source close to RedBird told Reuters the decision to withdraw came after strong internal resistance from senior staff inside the Telegraph newsroom.
People familiar with the negotiations said the transaction is worth roughly £500 million. The Financial Times reported the figure had been set to repay funds invested by the RedBird-backed consortium.
DMGT said the parties have now entered an exclusivity period to finalize the terms of the transaction and prepare regulatory filings, which they expect to progress quickly.
The Telegraph did not immediately respond to a request for comment.
A spokesperson 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."
