Redbird Capital, which holds a minority stake in Liverpool Football Club owner Fenway Sports Group, has pulled out of a deal to buy Telegraph Newspaper Group for an estimated £500m. The development marks the latest in a tumultuous two-year takeover spree for the 170-year-old newspaper company.
A representative from Redbird Capital said: “Redbird today withdrew its bid for Telegraph Media Group. We remain confident that the Telegraph and its world-class team have a bright future and are committed to securing a solution that is in the best interests of our employees and readers.”
The announcement casts doubt on the future of the Telegraph’s daily and Sunday titles and follows intense scrutiny of Redbird, founded by Jerry Cardinale, over alleged links to China.
In 2021, the Redbirds acquired a stake in FSG for around £533m, a move seen as essential to shore up Liverpool’s bottom line following the financial hit from the coronavirus pandemic. The deal also brings basketball superstar LeBron James, businessman Maverick Carter, and their business associate Paul Wachter into FSG.
At the time, FSG’s John W. Henry, Tom Warner and Mike Gordon said in a statement: “Our strategic partnership with Jerry and the entire Redbird team will strengthen our ability to pursue future growth opportunities in an accelerated manner, but with the same selectivity that has served us so well in the past.”
“We are also pleased to welcome LeBron, Maverick and Paul to our ownership group, with whom we have had a great working relationship for more than a decade. Their addition is an important milestone for FSG, expanding and deepening our long-standing friendship and relationship that began in 2010.”
“To our fans and supporters: Winning continues to be a driving force for all of us. FSG’s growth as an organization allows us to further strengthen our resources and commitment to the communities we serve. We look forward to having these talented new partners join us in the next chapter of FSG’s evolution.”
