Axel Springer agrees to buy Telegraph Media Group in £575m deal

European media firm Axel Springer has agreed to purchase the Telegraph Media Group (TMG) in a deal costing £575m.

The deal trumps the £500m takeover proposed late last year by the Daily Mail and General Trust (DMGT) - the government had ordered an investigation into that deal on public interest and competition grounds.

TMG owns the Daily Telegraph and the Sunday Telegraph, the Telegraph Magazine and the website and app.

Axel Springer chief executive Mathias Dopfner said he wanted to "preserve the distinctive character and legacy" of the Telegraph.

"More than 20 years ago, we tried to acquire the Telegraph and did not succeed. Now our dream comes true," said.

"To be the owner of this institution of quality British journalism is a privilege and a duty."

In a company statement, Alex Springer said it would back an investment programme into TMG to "grow and expand the business".

It will also expand the reach of the Telegraph into the United States, it said.

Axel Springer is a large European media company based in Germany that owns several titles, including Bild, Die Welt, Politico and Business Insider.

It will be the company's largest acquisition, after its 2021 purchase of Politico for roughly $1bn (£750m).

TMG has been without an owner since 2023, because of debts owed by the previous owners, the Barclay brothers.

Lloyds Banking group effectively repossessed the Telegraph after the Barclay family fell into arears on debts secured against the media company.

Several attempts to buy the group have fallen through over the years.

US investment group RedBird Capital had attempted to buy the group twice.

The group paid off a £600m loan to Lloyds, effectively gaining control of TMG, but its bid for ownership was initially rebuffed by the previous Conservative government as it was majority funded by Abu Dhabi's IMI group, which is owned by the Abu Dhabi royal family.

Shortly after that deal fell through, the Daily Mail's publisher announced it would buy the group for £500m.

But last month Culture Secretary Lisa Nandy launched a probe into the Mail's proposed deal over concerns it could affect the "plurality of views" in the UK media.