Liverpool part-owners pull out of £500m deal after striking agreement

Liverpool part-owners RedBird Capital have pulled out of a proposed £500 million deal to acquire The Telegraph Media Group, despite having previously struck an agreement. The move comes after months of negotiations and regulatory scrutiny, with concerns over foreign ownership and media plurality playing a significant role in the decision. RedBird, which holds an 11% stake in Fenway Sports Group (FSG), the majority owners of Liverpool FC, had been leading a consortium that included other major investors such as Lord Rothermere’s DMGT and billionaire Sir Leonard Blavatnik.

The deal was initially seen as a landmark moment for UK print media, marking the largest investment in the sector in a decade. RedBird’s involvement was expected to bring substantial financial muscle and a strategic focus on digital transformation, leveraging data analytics and AI to boost subscriptions and expand The Telegraph’s international reach, particularly in the US market. The consortium also planned to develop new content verticals in travel and events, aiming to capture commercial opportunities with a growing mass-affluent subscriber base.

However, political and regulatory pressures mounted, with previous attempts by RedBird to acquire The Telegraph blocked due to concerns over foreign ownership. The latest deal structure was adjusted to meet regulatory requirements, but ultimately, RedBird decided to withdraw from the agreement. This decision highlights the challenges of navigating complex media ownership rules and the influence of political considerations in major acquisitions.

Despite the setback, RedBird’s broader media and sports portfolio remains robust, with stakes in Liverpool FC, All3Media, Fulwell Entertainment, and other high-profile ventures. The firm’s withdrawal from the Telegraph deal does not diminish its significant presence in both the media and sports industries, but it does underscore the difficulties of executing large-scale media transactions in the current regulatory environment.