Billionaire Len Blavatnik in Talks for Investment in The Telegraph Newspaper
Billionaire entrepreneur Len Blavatnik is reportedly in discussions with Redbird Capital Partners about making a minority investment in The Telegraph, one of the UK’s most influential newspapers. According to a report by Sky News, Redbird Capital has initiated talks with Blavatnik about investing in the newspaper, although no agreement has been reached and it remains unclear whether one will be.
The news was first reported by Forbes, citing sources close to the situation. Redbird Capital declined to comment on the matter, while a spokesperson for Blavatnik’s investment firm, Access Industries, said that "as a matter of principle, Sir Leonard does not comment on market speculation or on any conversations Access may or may not be having regarding potential investments."
Len Blavatnik, a dual citizen of the US and UK, is a highly successful entrepreneur with a net worth estimated at $25.6 billion, according to Forbes. He has made investments in a range of industries and countries, including Warner Music, streaming service DAZN, chemicals firm LyondellBassell, and energy conglomerate Calpine. Blavatnik was knighted by Queen Elizabeth II in 2017 for services to philanthropy and has given or pledged more than $1 billion to philanthropic endeavors, with a particular emphasis on supporting universities such as Harvard, Stanford, and Yale.
The potential investment by Blavatnik in The Telegraph comes at a time when the newspaper is facing uncertainty over its ownership. A cross-party group of parliamentarians recently urged the government to investigate how Redbird Capital is funding its takeover of the newspaper, citing concerns about the risk of "potential Chinese state influence" within Redbird Capital. The group, which includes MPs from various parties, expressed concerns about the lack of transparency regarding the sources of funding for the £500 million ($674 million) acquisition.
According to Forbes, sources close to Redbird Capital have confirmed that there are no Chinese state funds involved in the proposed acquisition. Instead, a consortium of UK and US investors will form a new consortium for the deal, led by Redbird Capital, with United Arab Emirates-based International Media Investments (IMI) expected to be a minority investor, subject to new legislation currently progressing through parliament.
The Telegraph has been the subject of a two-year takeover saga that began when the Conservative-leaning newspaper was seized by Lloyds bank after the Barclay family failed to repay debts of more than £1 billion. A joint venture between Redbird Capital and IMI effectively gained control of The Telegraph in 2023, after providing a £600 million loan to the Barclay family. However, the Conservative government at the time blocked the deal when it adopted new regulations preventing foreign states from taking ownership of the press.
As reported by Forbes, Blavatnik’s fortune can be traced back to the chaotic post-Soviet days, when he made a series of shrewd investments through partnerships with various Russian moguls, including Viktor Vekselberg and Mikhail Fridman. He has since used the proceeds to invest in companies and buy assets in the West, including his most attention-grabbing acquisition, Warner Music, which he bought for $3.3 billion in 2011 and took public on the Nasdaq in June 2020 at quadruple the value.
The potential investment by Blavatnik in The Telegraph is likely to be seen as a significant development in the UK newspaper industry. As a highly successful entrepreneur with a track record of investing in major companies, Blavatnik’s involvement could bring much-needed stability and investment to the newspaper. However, the deal is still in the early stages, and it remains to be seen whether an agreement will be reached.
In conclusion, the potential investment by Len Blavatnik in The Telegraph newspaper is a significant development in the UK media landscape. As reported by Forbes, Blavatnik’s involvement could bring much-needed stability and investment to the newspaper, although the deal is still in the early stages and it remains to be seen whether an agreement will be reached.
