RedBird Capital, who hold a minority stake in Liverpool Football Club owners Fenway Sports Group, have withdrawn from a deal estimated at around £500million to purchase the Telegraph newspaper group. This development marks the latest twist in a turbulent two-year takeover saga for the 170-year-old newspaper enterprise.
A representative for RedBird Capital said: "RedBird has today withdrawn its bid for the Telegraph Media Group. We remain fully confident that the Telegraph and its world-class team have a bright future ahead of them and we will work hard to help secure a solution which is in the best interests of employees and readers."
This announcement casts doubt over the future of the Telegraph's daily and Sunday newspaper titles, and follows intense scrutiny of RedBird, founded by Gerry Cardinale, due to alleged connections with China.
In 2021, RedBird acquired a stake in FSG for approximately £533m, a move seen as vital to bolstering Liverpool's revenues in the wake of the financial fallout from the Covid-19 pandemic. This deal also saw basketball superstar LeBron James, businessman Maverick Carter and their business associate Paul Wachter become part of FSG.
At the time, FSG's John W Henry, Tom Werner and Mike Gordon said in a statement: "Our strategic partnership with Gerry and the entire team at RedBird will enhance our ability to pursue future growth opportunities in a more accelerated way but with the same selectiveness that has served us so well.
"We are also pleased to welcome to our ownership group LeBron, Maverick and Paul, with whom we have enjoyed a successful collaboration for well over a decade. Their addition is an important milestone for FSG and expands and deepens a longtime friendship and relationship that began in 2010.
"To our fans and supporters: winning continues to be the driving force for all of us. The growth of FSG as an organisation allows us to further strengthen our resources and commitment to the communities we serve, and we look forward to having these talented new partners join us in the next chapter of FSG's evolution."