Germany’s Axel Springer buys 170-year-old Telegraph in £575m deal

One of Britain’s oldest national newspapers, founded more than 170 years ago, is set to change hands after Germany’s Axel Springer agreed a £575m deal to acquire Telegraph Media Group, bringing a major European media owner into the heart of Fleet Street

European media firm Axel Springer has agreed to purchase the Telegraph Media Group (TMG) in what the paper describes as a “surprise raid that brings a potent force to Fleet Street”.

The £575m cash deal trumps the £500 takeover proposed last year by the Daily Mail and General Trust (DMGT).

Axel Springer said it plans to “grow and expand” TMG, which owns the Daily Telegraph, the Sunday Telegraph, and Telegraph Magazine, using “technological expertise and artificial intelligence”.

Its chief executive, Mathias Dopfner, 63, said he wanted to “preserve the distinctive character and legacy” of the paper, which was founded in 1855.

“More than 20 years ago, we tried to acquire the Telegraph and did not succeed. Now our dream comes true,” he said.

“To be the owner of this institution of quality British journalism is a privilege and a duty.”

Axel Springer, Germany’s largest newspaper publisher, already owns several media titles including Business Insider, Politico, Die Welt and Bild.

The firm is named after the newspaperman who founded the company after the Second World War.

It previously unsuccessfully bid for the Telegraph in 2004 and for the Financial Times in 2015.

But last week, the company announced that it had struck a deal with the Telegraph’s owner RedBird IMI, an international consortium which stepped in to purchase the newspaper in 2023 and has since been looking for a buyer.

The purchase will reportedly be the company’s second largest acquisition following that of Politico for approximately $1bn (£750m).

In a company statement, Axel Springer said: “More than 20 years ago, we unsuccessfully attempted to acquire the company. Now our dream is coming true. Owning this institution of British quality journalism is both a privilege and a responsibility.

“We want to develop the Telegraph further, preserving its distinctive character and heritage, and help make it the most widely read and intellectually inspiring, civic-minded, conservative newspaper in the English-speaking world. The Telegraph stands for freedom, personal responsibility, democratic values, and a belief in open societies and free-market principles. These convictions align with our core values.”

Döpfner added: “We are aware that the outstanding journalists and all employees of the Telegraph have been working in a period of uncertainty for an extended time. That is never easy. We want to end this uncertainty as quickly as possible and welcome you as part of Axel Springer.”

Several attempts to buy the group have fallen through over the years. The Telegraph had been in line to be bought by DMGT, the publisher of the Daily Mail, for £500million.

DMGT said in a statement: “DMGT confirms that RedBird IMI has advised it has entered into an agreement with Axel Springer for the potential takeover of the Telegraph Media Group.

“We have worked hard to complete the acquisition of the Telegraph and were confident that the organisation would have thrived under our long-term stewardship.

“We were optimistic about our plans to invest in its exceptional journalism and secure the future of a respected British media brand.

“We wish every success to Axel Springer and the Telegraph.”

But it added: “We believe that the protracted and out-of-date regulatory framework guarantees that UK-based national newspaper groups are at a huge competitive disadvantage in any merger process.”

RedBird IMI said in a statement: “Following swift and efficient negotiations, we are pleased to have reached an agreement with Axel Springer for the acquisition of RedBird IMI’s rights to The Daily Telegraph. 

“Given the strength of their commercial offer and a clearly structured regulatory path to ownership, we are confident that Axel Springer is well positioned to lead The Telegraph into its next chapter. Our team is now working closely with the UK government to obtain the necessary approvals to complete this transaction.”