Wealthy tycoon Blavatnik sought after for acquiring shares of The Daily Telegraph newspaper
Scoop: Bankroll Magnate Sir Len Blavatnik Courted for The Daily Telegraph Stake
The tycoon behind DAZN, the sports-streaming service, finds himself in hot pursuit as RedBird Capital Partners tries to sway him into investing in The Daily Telegraph alongside their acquisition of the paper's new American majority-owners.
Rumors swirl that Sir Len Blavatnik, knighted by the late Queen Elizabeth II for his philanthropic endeavors, has been sounded out regarding a potential deal. However, it's important to note that no agreements have been hammered out, and it's unclear if one will materialize.
Sir Len's empire, Access Entertainment, is managed by Danny Cohen, a former BBC director of television. His extensive investments span across the arts, media, and entertainment industries.
RedBird Capital announced their agreement to acquire The Daily Telegraph Media Group for a whopping £500m last month. They hinted at talks with various UK-based minority investors, including printing experts and those committed to preserving the newspaper's values[3]. Though they primarily refer to Lord Rothermere, the Daily Mail proprietor, who's still in negotiations to purchase a substantial stake in the Mail's rival right-leaning newspaper group[1].
Insiders claim Goldman Sachs is advising the Daily Mail on the investment, with ongoing discussions pertaining to the deal. Meanwhile, Abu Dhabi's state-backed vehicle, IMI, remains poised to acquire the maximum 15% stake allowed under proposed new media ownership rules[2], despite opposition from some parliamentarians.
Concerns about "potential Chinese state influence" have arisen due to RedBird Capital chairman, John Thornton, and China's sovereign wealth fund's alleged connections[4]. However, RedBird Capital insiders have subsequently dismissed these claims.
Sir Len's investment portfolio includes DAZN, now backed by a Saudi sports group, along with mobile games studio Tripledot and theatre production company, Scenario Two. Meanwhile, Dovid Efune, owner of The New York Sun, is reportedly assembling a rival bid for The Telegraph, with Jeremy Hosking, a prominent City investor, on board. However, it seems Efune's prospects have taken a hit with Nadhim Zahawi's withdrawal from his supposed "British bid."
The Telegraph's parent company was steered into bankruptcy proceedings two years ago by Lloyds Banking Group, which had grown weary of the Barclay family—their long-standing owners. RedBird IMI, a joint venture between the two firms, paid £600m several months later to secure a call option intended for ownership of The Telegraph newspapers and The Spectator magazine[2]. However, this objective was thwarted by a change in media ownership laws that forbade any form of foreign state ownership. Negotiations with Select UK-based minority investors continue, with final agreements still pending and regulatory hurdles expected[2].
Intrigued? Stay tuned for more updates as the negotiations unfold.
Sources:[1] Telegraph Media Group Sold for £500 Million[2] Abu Dhabi's International Media Investments Expected to Acquire 15% Stake in The Telegraph[3] Foreign States Face 15% Newspaper Ownership Limit Amid Telegraph Row[4] Parliamentarians Warn of Potential Chinese State Influence Over The Daily Telegraph After New Ownership Deal
Sir Len Blavatnik, with his diverse investments in business, finance, and war through his empire Access Entertainment, could potentially invest in The Daily Telegraph amidst RedBird Capital Partners' acquisition, given the ongoing talks about a possible deal.
The acquisition of The Daily Telegraph Media Group by RedBird Capital Partners is being advised by Goldman Sachs, but concerns about potential foreign state influence, especially from China, have also been raised due to RedBird Capital's chairman, John Thornton's, alleged connections.
