Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
New York Sun owner Dovid Efune is closing in on a deal to buy the Telegraph for more than £550mn, which would end a 16-month battle for control of the conservative British national newspaper.
In a deal expected to be agreed next week, Efune is set to enter exclusive talks with RedBird IMI to become the new Telegraph proprietor, according to three people close to the discussions.
Talks between the two sides were at an advanced stage this weekend although they cautioned that these have yet to be finalised, they said. A deal could be agreed early next week, they added.
The decision by RedBird IMI to progress talks with Efune on an exclusive basis would see off competition for the newspaper from David Montgomery’s National World, hedge fund boss Paul Marshall and former UK chancellor Nadhim Zahawi.
Efune has offered more money for the newspaper than other parties such as National World, according to those close to the sales process.
The sale would be a success for RedBird IMI, which was blocked from completing the deal to acquire the Telegraph after politicians raised concerns about a national newspaper being partly owned by a group backed by Abu Dhabi.
RedBird IMI acquired the right to own the Telegraph and its sister magazine The Spectator for £600mn last year after the Barclay family lost control of the titles. The Spectator has already been sold to Paul Marshall for £100mn, which means that the Telegraph sale could more than recoup the initial investment.
But the deal would also mean further questions over the future strategy for the Telegraph under Efune, with the British-born media executive yet to make any indication about what he will do with the newspaper or even why he wants to buy it.
Efune is the publisher of The New York Sun, which he acquired and revived as an online publication in 2021. He was previously editor-in-chief of the Algemeiner, a Jewish publication.
Efune is relatively unknown in the UK, but his editorials in the New York Sun and comments on social media have been scrutinised in recent weeks given his strident pro-Israel stance. He has links with Britain, however, having been born in the UK and has relatives including former Dixons boss Sir Stanley Kalms.
Efune has backing from a number of US investors and funds for his bid, according to those close to the talks.
The future of the Telegraph has been uncertain since the Barclay family lost control of the newspaper last summer over unpaid debts to Lloyds Banking Group.
RedBird IMI then derailed a sales process with a knockout £600mn offer for the debt behind the newspaper and the Spectator, only to find that its ability to convert this to full ownership was blocked by the UK government.
A campaign, supported by the editorial team at the Telegraph, helped convince Conservative ministers that the future of a right-leaning newspaper with close links to the party should not be at risk of influence by a foreign government. The newspaper has since been overseen by a group of independent directors.
Robey Warshaw and Raine Group are advising RedBird IMI on the deal.
RedBird IMI declined to comment while Efune was not immediately available for comment.
