The British-born owner of the New York Sun is favored to acquire the iconic UK newspaper as other bidders struggle to keep pace.
Is a Late Entrant Now Leading the Auction?
Dovid Efune, the British-born owner of the politically right-leaning New York Sun, has emerged as the surprise frontrunner to acquire the Daily and Sunday Telegraph just days before the final bid deadline. Despite entering the auction late, Efune’s bid has gained significant momentum and is now regarded as the most competitive ahead of Friday’s midnight deadline.
Efune, whose offer is reported to be around £550 million, is thought to have sidestepped the political and regulatory obstacles that derailed an earlier bid backed by the ruling family of the United Arab Emirates. Several parties have received his bid positively, with Telegraph insiders acknowledging that while “none of the bidders are perfect,” Efune’s proposal is broadly welcomed.
Will This Deal Reconnect the Telegraph With Conrad Black?
A successful bid by Efune could reconnect the Telegraph with its controversial former owner, Conrad Black. Black, who regularly contributes to the New York Sun, was convicted of fraud and obstruction of justice in 2007 and served more than three years in prison before receiving a pardon from then-President Donald Trump in 2019.
This potential link has raised eyebrows, but Efune’s bid remains strong. He is one of only two bidders to have attended high-level management presentations at the Telegraph. Industry observers suggest this puts him in a prime position to win over the senior team, who, sources say, are “broadly supportive” of his vision for the newspaper.
Has Hedge Fund Tycoon Paul Marshall Lost Momentum?
Meanwhile, several other high-profile bidders remain in the race. Hedge fund mogul Sir Paul Marshall, who recently acquired The Spectator for £100 million, had been seen as a significant contender. With support from fellow hedge fund titan Ken Griffin, many believed Marshall aimed to expand his growing right-wing media empire, which already includes GB News. However, despite early enthusiasm, sources close to the deal now suggest that Marshall’s bid has “lost momentum.”
Marshall’s acquisition of The Spectator raised eyebrows in media circles, primarily because the magazine only generates around £2 million in annual profits. Still, The Spectator’s £100 million price tag has fueled expectations that the Telegraph—reportedly turning a profit of over £40 million annually—will attract bids “north of £500 million.”
Can David Montgomery and National World Impress?
Another player still in the mix is National World, the regional media group that owns titles such as The Scotsman and The Yorkshire Post. National World’s owner, David Montgomery, was the only other bidder to attend a senior management presentation at the Telegraph. However, insiders reported his vision for the Telegraph’s future left many attendees unimpressed.
One person present at the presentation described Montgomery’s approach as “dated” and “a bit like dad dancing – he doesn’t understand modern media.” Montgomery’s reputation for aggressive cost-cutting, combined with a lackluster performance in the pitch meeting, has cast doubt on his ability to secure the Telegraph.
Will Lord Rothermere Re-Enter the Race?
Elsewhere, Lord Rothermere, the controlling shareholder of The Daily Mail, is reportedly reconsidering his involvement in the auction. He had previously withdrawn from the bidding process, citing the likelihood of regulatory hurdles and competition concerns. With the Labour Party now leading the polls, Rothermere’s concerns about political pushback have only grown.
Yet, as the auction progresses, Rothermere’s interest has been reignited, and some close to the process believe he could make a late move. However, securing the Telegraph would likely provoke significant scrutiny from regulators, especially given the potential for media consolidation.
Can Nadhim Zahawi Secure Middle Eastern Financing?
Another fascinating figure who may be preparing a bid is former Chancellor Nadhim Zahawi. Zahawi reportedly seeks to raise capital in the Middle East to finance a potential offer. His close relationship with the Barclay family, the former owners of the Telegraph, adds a layer of intrigue to his possible involvement.
Though Zahawi’s efforts are still developing, some sources suggest his bid could involve a partnership with foreign investors. However, the UK government previously blocked a bid involving Gulf state money, expressing concern over foreign ownership of politically influential UK media outlets.
Has Rupert Murdoch Exited the Bidding War?
Rupert Murdoch’s News UK was initially thought to be interested in acquiring both the Telegraph and The Spectator. However, Murdoch is no longer considered a bidder, with insiders noting that his interest had been primarily focused on The Spectator. With that title already sold to Sir Paul Marshall, News UK is now out of the running for the Telegraph.
What Happened to the Redbird IMI Bid?
The sale of the Telegraph follows a collapsed bid backed by Redbird IMI, a vehicle primarily funded by Sheikh Mansour, the owner of Manchester City Football Club. Redbird IMI had aimed to acquire both the Telegraph and The Spectator by paying off the debts of the previous owners, the Barclay family. However, the UK government vetoed this bid, raising objections to the prospect of a foreign state acquiring a majority stake in influential British newspapers.
Politically sensitive titles like The Telegraph and The Spectator, owned by a foreign entity, alarmed lawmakers, particularly those in the previous Conservative government. Their decision to block the sale underscores these newspapers’ symbolic and political weight.
Is the Telegraph a "Trophy Asset" Worth the Price?
The Telegraph and The Spectator are considered “trophy assets,” and such high-profile media outlets rarely come up for sale. This prestige, combined with the newspapers’ influence, ensures they command far higher prices than their financial performance might justify.
One industry expert noted, “Titles like these aren’t just about profit; they’re about influence and the power to shape public discourse.”
Redbird IMI had effectively valued the Telegraph and The Spectator at £600 million, a figure many believed to be overestimating. Yet, after Marshall paid £100 million for The Spectator alone, optimism is growing that the Telegraph’s final sale price will surpass £500 million.
What Legal and Regulatory Challenges Lie Ahead?
While the final bids are due imminently, the Telegraph’s future ownership will likely take time to settle. Legal and regulatory challenges will need to be navigated, and some industry insiders expect the process to drag on for several weeks or even months.
For now, Dovid Efune stands as the clear favorite, with his bid seen as the one to beat. Yet, as the deadline looms, plenty of room remains for surprises.
