The owner of the politically right-leaning New York Sun has emerged as the favorite to buy the Daily Telegraph and Sunday Telegraph ahead of Friday’s bidding deadline.
Although British-born Dovid Efune is a latecomer to the auction, his bid is viewed by many as a potential new front-runner.
He is thought to be able to deliver a competitive offer of around £550m without raising political and regulatory objections, while a takeover backed by the United Arab Emirates’ ruling family has been blocked by the government.
Mr Efune was one of only two bidders to attend a presentation by The Telegraph’s senior management.
They generally welcomed the prospect of his ownership, while acknowledging that “no bidder is perfect.”
If the bid is successful, it could establish a link between the Telegraph and its former owner Conrad Black.
Lord Black, a regular contributor to The New York Sun, was convicted of fraud and obstruction of justice in 2007 and jailed for more than three years, but was pardoned by then US President Donald Trump in 2019 .
There are several other bidders still in the hunt for one of Britain’s most influential and profitable daily newspapers and its sister publication The Sunday Times.
hedge fund tycoon Sir Paul Marshall recently bought Spectator magazine for £100m and appointed former Conservative ministers Michael Gove becomes new editor.
Some have speculated Sir Paul, who has financial backing from hedge fund boss Ken Griffin, wants to join a growing right-leaning media empire that includes GB News.
However, sources close to the deal said momentum for the acquisition may be waning.
The National World, which owns regional newspapers including The Scotsman and The Yorkshire Post, is also in the running and its owner David Montgomery is another person taking part in a speech by current Telegraph management bidder.
Attendees were reportedly unimpressed with his plans for the group – perhaps unsurprising given his record of cutting staff in other roles.
One attendee described his ideas for the future of The Telegraph as “outdated” and “a bit like dad dancing – he doesn’t understand modern media”.
Lord Rothermere, the controlling shareholder of the Daily Mail, is thought to have revived interest in the auction, having previously withdrawn citing inevitable competitive opposition from regulators and a New Labor government.
Former Prime Minister Nadhim ZahawiTrump, who has close ties to the Barclays family, the Telegraph’s former owners, is also thought to be trying to raise money in the Middle East to fund the bid.
Rupert Murdoch’s News UK showed early interest but is no longer seen as a bidder and is more interested in The Spectator.
Sources close to the deal said other potential bidders could emerge as Friday’s midnight deadline approaches.
The Telegraph comes after a bold attempt to gain ownership of the Telegraph and Spectator by paying off the debts of the former owners, backed by Redbirds IMI, a company largely funded by Manchester City boss Sheikh Mansour, failed. Newspaper was re-sold.
The proposal was rejected by the previous Conservative government, which balked at the idea of foreign governments owning majority stakes in politically influential British newspapers and journals.
Publications like The Telegraph and The Spectator were not often sold and were considered “trophy assets”.
Such assets have prestige and influence, which means they command a higher price than their financial performance alone would justify.
Redbird IMI actually paid £600m for the two games, and many believe they paid too much.
However, Sir Paul Marshall spent £100m on The Audience alone, even though the company was only making around £2m a year.
The valuation has fueled optimism at Redbird IMI that the Daily Telegraph, which has profits in excess of £40m, will sell for “in excess of £500m”.
If so, Bay Area bidders would be able to abandon their takeover attempts without damaging their wallets or dignity.
Title is expected to take weeks or even months to resolve as various legal and regulatory hurdles are cleared.
