London: US investment group RedBird Capital Partners announced Friday it had abandoned its takeover of The Telegraph, reigniting uncertainty over the British newspaper's future.
RedBird said in a statement that it has "today withdrawn its bid for the Telegraph Media Group," which comprises the 170-year-old paper's print and online operations.
RedBird struck an "in-principle agreement" in May to purchase TMG for £500 million ($660 million).
The deal concluded a protracted sale lasting around two years, which involved an intervention by the previous Conservative government.
US-Emirati consortium RedBird IMI, a joint venture between RedBird Capital and Abu Dhabi's International Media Investments, had already struck a deal for TMG in late 2023.
However, the previous UK government triggered a swift resale amid concern over the potential impact on freedom of speech given Abu Dhabi's press censorship record.
"We remain fully confident that the Telegraph and its world-class team have a bright future ahead of them and we will work hard to help secure a solution which is in the best interests of employees and readers," RedBird said Friday.
- Sale woes -
Founded in 1855, the Telegraph was bought by twin brothers Frederick and David Barclay in 2004 for £665 million.
But it was put up for sale in 2023 by British bank Lloyds to pay off the Barclay brothers debts, plunging the paper's future into question.
Last year, TMG agreed to sell British right-wing magazine The Spectator to hedge fund manager Paul Marshall for £100 million.
Following the failed joint RedBird IMI bid, the most recent deal for control of TMG would have given RedBird a majority stake and IMI a 15-percent stake, British media reported.
RedBird in May said the deal would unlock a new era of growth for the Telegraph and expand the paper internationally.
However, the deal faced fresh backlash from human rights and freedom of expression groups over RedBird's links to China.
RedBird Capital chair John Thornton sits on the advisory council of the China Investment Corporation, the country's largest sovereign wealth fund, several NGOs noted in an open letter in August.
The letter, addressed to UK media minister Lisa Nandy, expressed fears of Chinese influence in UK media -- a claim that RedBird denied in a statement to AFP at the time.
Telegraph staff also expressed discontent over the takeover, which, according to British media, contributed to RedBird's decision to withdraw its offer.
The Telegraph reported on Friday that editor Chris Evans told staff "it's no secret that I, all the senior editors and many of our writers had concerns about this bid."
The UK government had yet to respond.
