The owner of the UK tabloid Daily Mail has agreed to a £500 million ($654 million) deal with US-Emirati consortium RedBird IMI to acquire The Telegraph newspaper, Daily Mail and General Trust (DMGT) said Saturday.

“DMGT has signed an agreement with RedBird IMI over the acquisition of the Telegraph Media Group at a valuation of £500 million,” the company said in a press release.

The acquisition of the 170-year-old newspaper would make DMGT one of the largest right-leaning media groups in the UK and is expected to face scrutiny from competition regulators.

Protracted sale saga

The deal comes a week after US investment group RedBird Capital Partners abandoned its takeover, raising uncertainty about the paper’s future and extending a sale process marked by government intervention.

DMGT, which also owns national newspapers Metro and The i Paper, said it would enter a period of exclusivity to finalize the transaction, which the parties “expect to happen quickly.”

Officials said the deal would provide “much-needed certainty and confidence” to staff, whose jobs have been in limbo for more than two years. DMGT plans to “accelerate” the Telegraph’s international expansion, particularly in the United States, while maintaining editorial independence.

Regulatory and political concerns

RedBird IMI is a joint venture between RedBird Capital and Abu Dhabi’s International Media Investments. A previous bid for TMG in 2023 was halted by the Conservative government amid concerns over press freedom and foreign influence.

Culture Secretary Lisa Nandy said her department would “review any new buyer acquiring the Telegraph in line with the public interest and foreign state influence media mergers regimes.”

Founded in 1855, The Telegraph was bought by Frederick and David Barclay in 2004 for £665 million. DMGT was among several bidders in the auction, which included hedge fund manager Paul Marshall.

DMGT Chairman Jonathan Harmsworth said, “I have long admired the Daily Telegraph… Britain’s largest and best-quality broadsheet newspaper.”