Axel Springer, the German media conglomerate whose U.S. assets include Politico and Business Insider, said on Friday it had purchased U.K. newspaper The Telegraph for roughly $770 million (£575 million) in cash, wresting it away from Daily Mail owner Lord Rothermere.
The purchase brings an end to years of uncertainty for the conservative British paper, which has had several suitors in recent years. RedBird IMI, the private equity group that was forced to abandon its bid to buy the newspaper after intense regulatory scrutiny in the U.K. last year, had initially planned to sell the Telegraph to Rothermere for $650 million.
It also adds a U.K. asset to CEO Mathias Döpfner’s company, which has been seeking a new property to add to its stable of media ventures.
“More than 20 years ago, we tried to acquire The Telegraph and did not succeed,” Döpfner said in a statement. “Now our dream comes true. To be the owner of this institution of quality British journalism is a privilege and a duty.”
The company said it would invest in the Telegraph to make it “the leading center-right media outlet in the English-speaking world,” including by expanding its U.S. presence. Part of that expansion will include “technological excellence and transformation with the best Artificial Intelligence tools,” wrote Döpfner, who promised to protect the paper’s editorial independence.
The purchase comes weeks after Axel Springer joined a consortium of investors led by New York Sun publisher Dovid Efune, who for years has tried to buy the Fleet Street staple. Efune told TheWrap in a statement the German company “will be an exemplary proprietor for this treasure of Western journalism.”
“We’re glad to have played a meaningful role in guiding this positive outcome and helping secure the long term future of the Telegraph,” Efune added.
Axel Springer thanked Efune in its statement for his “essential support and assistance on this transaction,” and a company spokesperson declined to comment beyond that.
A Daily Mail and General Trust spokesperson said the company “worked hard to complete the acquisition of the Telegraph and were confident that the organisation would have thrived under our long-term stewardship,” blasting the U.K.’s prolonged regulatory process that scrutinizes media acquisitions.
“We were optimistic about our plans to invest in its exceptional journalism and secure the future of a respected British media brand,” the spokesperson said. “We wish every success to Axel Springer and the Telegraph.”
