RedBird Capital Abandons £500m Bid for Telegraph Media Group Amidst China Ties Scrutiny
A long-running bid by RedBird Capital, a private equity group founded by Gerry Cardinale, to acquire the Telegraph Media Group has come to an end with the company dropping its £500m offer. The move leaves the future of the Daily and Sunday newspapers in doubt as investors and politicians alike had been calling for greater scrutiny over the group's ties to China.
The bid was heavily backed by investors including Sir Leonard Blavatnik, who would have held a 10% stake, and Abu Dhabi's International Media Investments (IMI), which would have retained a 15%. However, concerns over RedBird Capital's links to China - including its chairman John Thornton having previously shaken hands with the Chinese Communist party's top lieutenant Cai Qi - have sparked intense scrutiny.
The Telegraph itself published a photo of Thornton and Cai in May, prompting accusations that the British newspaper was being used as a conduit for Chinese influence. Human rights groups had urged Culture Secretary Lisa Nandy to halt the bid and investigate RedBird Capital's ties to China, citing Thornton's involvement with the China Investment Corporation and Silk Road Finance Corporation.
RedBird Capital had insisted there was no Chinese involvement or influence in the proposed acquisition of the Telegraph. However, despite this assurance, the company has now withdrawn its bid, leaving the future of the newspaper uncertain. The group's board said it would work closely with regulators to progress a sale, but investors are likely to be disappointed by the development.
The collapse of the bid is the latest blow to RedBird Capital, which has faced criticism over its ownership structure and ties to foreign governments. With the government's ban on foreign state ownership of UK newspapers still in place, investors will be watching closely to see how this saga unfolds.
A long-running bid by RedBird Capital, a private equity group founded by Gerry Cardinale, to acquire the Telegraph Media Group has come to an end with the company dropping its £500m offer. The move leaves the future of the Daily and Sunday newspapers in doubt as investors and politicians alike had been calling for greater scrutiny over the group's ties to China.
The bid was heavily backed by investors including Sir Leonard Blavatnik, who would have held a 10% stake, and Abu Dhabi's International Media Investments (IMI), which would have retained a 15%. However, concerns over RedBird Capital's links to China - including its chairman John Thornton having previously shaken hands with the Chinese Communist party's top lieutenant Cai Qi - have sparked intense scrutiny.
The Telegraph itself published a photo of Thornton and Cai in May, prompting accusations that the British newspaper was being used as a conduit for Chinese influence. Human rights groups had urged Culture Secretary Lisa Nandy to halt the bid and investigate RedBird Capital's ties to China, citing Thornton's involvement with the China Investment Corporation and Silk Road Finance Corporation.
RedBird Capital had insisted there was no Chinese involvement or influence in the proposed acquisition of the Telegraph. However, despite this assurance, the company has now withdrawn its bid, leaving the future of the newspaper uncertain. The group's board said it would work closely with regulators to progress a sale, but investors are likely to be disappointed by the development.
The collapse of the bid is the latest blow to RedBird Capital, which has faced criticism over its ownership structure and ties to foreign governments. With the government's ban on foreign state ownership of UK newspapers still in place, investors will be watching closely to see how this saga unfolds.
and then there's the issue of influence - is it okay for someone with 'connections' to just waltz in and try to shape the media landscape? 
and i mean, i'm not gonna take sides or anything, but shouldn't we be more concerned about who's behind the scenes pulling the strings? 
like, what's the real cost of our 'freedom' when it comes to media ownership? 
is this really just about the £500m or is it something deeper? 
I mean, can you blame them for withdrawing their bid? The scrutiny around RedBird Capital's China ties is pretty intense right now 
. It's not like they were trying to hide it or anything... John Thornton shaking hands with Cai Qi in a photo op isn't exactly subtle 
.
. Maybe RedBird Capital was just trying to play it safe and avoid any more controversy?
!
It's just good business sense, you know? Companies have to deal with risks and scrutiny from time to time. And if a few human rights groups and politicians can't handle that, then maybe they should be looking at their own reflection in the mirror. 
I'm not saying it was necessarily a bad bid or anything, but let's be real, investors are always on the lookout for potential risks. If you're gonna throw caution to the wind, you gotta know what you're getting yourself into. 
. But on the other hand, can't say I blame them - all that scrutiny can be pretty intense 
. Now what about the future of the Daily and Sunday newspapers? Are we gonna see any other bidders come in or is this just a done deal? 
anyway i heard they're not allowed to own any british papers cuz of some old law... 
. Telegraph Media Group should've done more vetting on RedBird Capital before letting it get so close 
. Guess the government's ban wasn't enough to stop this deal from falling through 
. Now what? Will we lose another iconic British newspaper? 
I'm not surprised at all that RedBird Capital pulled out of their bid for Telegraph Media Group. The whole thing just reeked of China ties and influence 
. I do feel bad for the investors though - all that money was poured into this bid and now it's just...bye-bye 
The Culture Secretary, Lisa Nandy, stepped in when she should've been stepping on those bid papers a while ago. It just goes to show you what I always say - whoever is closest to the power gets the protection they need! 
I'm not surprised RedBird Capital bailed out 
. I'm glad we're getting some clarity on what's going on here 
. Someone who cares about journalism and isn't gonna sell out to the highest bidder 
. The whole thing smells like a Chinese influence game, and I don't blame investors for being wary. It's like, can we really trust that there aren't any ulterior motives at play? 
, but now that they're outta the picture I'm like...what's next? Will we just get some other foreign company to take over? 
It's not like they were sipping tea with the Queen or something! 
The government needs to get its act together and regulate these things properly, but instead it feels like they're just letting the situation slide...it's so infuriating 
. And now the future of the Daily and Sunday newspapers is all up in the air? 
but seriously, redbird capital needs to clean up its act if they wanna make a comeback