Telegraph’s £575m takeover by German group completed

Axel Springer has completed its £575 million takeover of Telegraph Media Group, ending a prolonged sale process around one of the UK’s most influential newspaper groups.

The German publisher said it had received the necessary regulatory approvals in the UK, Ireland and Austria. The transaction closes a deal agreed in March and ends about three years of uncertainty over ownership of the 171-year-old Telegraph titles.

A long sale process

The Telegraph’s ownership changed after the Barclay family lost control of the group over debts to Lloyds Bank. RedBird IMI then took control, but was later forced to resell the assets after UK rules blocked foreign state ownership of newspaper businesses.

Axel Springer emerged as the successful buyer after a drawn-out auction process. The company beat a rival offer from Daily Mail & General Trust by £75 million.

The completion of the takeover brings an end to a process that has been closely watched because of the Telegraph’s influence in British politics and media. It also marks another step in Axel Springer’s push to expand further in English-language media.

Leadership changes

The deal is already bringing management changes at the Telegraph. Anna Jones is leaving her role as chief executive of Telegraph Media Group.

Carolin Hulshoff Pol has been appointed to lead the Telegraph side of the business, while Patrick Wehrmann has been named group chief financial officer.

Axel Springer chief executive and controlling shareholder Mathias Döpfner said the deal had been long in the making. He pointed to shared values between the businesses and said technological change would shape the next phase of growth.

What happens next

The main immediate questions now are how the new owners will shape the Telegraph’s editorial direction, commercial strategy and digital business. The ownership change will also be watched for any wider implications for media plurality and foreign ownership rules in the UK.

Further changes to staffing, operations or strategy have not yet been set out in the reporting, but the completion of the deal ends the uncertainty that has surrounded the Telegraph sale since the Barclay family lost control.