When two brothers from the British billionaire Barclay family bought the Telegraph Media Group in 2004, they acquired one of the UK’s most influential newspapers: the DailyTelegraph. The conservative paper, where Boris Johnson once worked as a journalist, is considered one of the Tories’ favorite reads. This is sometimes due to the fact that telegraph Authors like David Frost, who was Brexit Minister under Johnson – and now, as a member of the House of Lords, praises the exit from the EU in his articles. So it’s no wonder that quite a few in Westminster telegraph as an excellent tool for exerting political influence. An instrument that, as the owner, is not so easy to give away. But now the newspaper is for sale.
The surprising news not only spread like wildfire in London, it also sparked all kinds of speculation this week. After all, the political and media landscape in the United Kingdom could change significantly with a new owner. In any case, it is certain that the major British bank Lloyds has commissioned a so-called receiver with the sale of the Telegraph Media Group. According to reports, the bank was forced to take this step after a dispute in the Barclay family, which owns it, escalated. Apparently it’s about a billion pounds in debt.
Lloyds Banking Group has brought in advisory firm AlixPartners, which now controls a Barclay family holding company. The holding company is called B.UK, is based in Bermuda, and through a complicated structure holds the shares of the Telegraph Media Group and Spectator Ltd., which in turn owns the magazine The Spectator heard. The magazine is published weekly and is considered as influential in Westminster as the DailyTelegraph and its Sunday edition Sunday Telegraph.
The value of the newspapers is estimated at up to 700 million pounds, the equivalent of 816 million euros. In 2004, twin brothers Frederick and David Barclay paid £665m. Frederick is 88 today, David passed away two years ago. The pair last made headlines in 2020 after Frederick sued his brother’s sons. He accused his nephews Aidan, Alistair and Howard of bugging him and his daughter. And that was during a confidential conversation at the Hotel Ritz in London, which had also once belonged to the twin brothers. The eavesdropping was the temporary climax of a family feud that has not ended to this day.
As for the publishing business, Aidan and Howard Barclay were on the board of the Telegraph Media Group. However, this week they were kicked out by AlixPartners. The Barclay family was clearly trying to limit the damage and made it clear that the receivership was unrelated to the Telegraph Media Group’s financial condition. The loans, which are said to have been the subject of dispute, are linked to the family’s ownership structure and media investments, according to a Barclay family spokesman, but “would in no way affect the operations or financial stability of the Telegraph Media Group “. The Barclay family companies are all “well capitalized, with minimal debt and strong liquidity.”
Chances of a buyer are not bad
In any case, the receiver AlixPartners will not initiate insolvency proceedings, but will ensure that the media group is sold. The investment bank Lazard should help. As it stands, the chances of finding a buyer are not bad. The telegraph and the Spectator are not only politically influential, but also economically profitable. In the past financial year, the Telegraph Media Group was able to increase sales by four percent to £245 million. The profit was 30 million pounds.
It is not possible to say exactly how high the circulation of the newspapers is because the media group has not published any figures since 2020. At the end of 2019 the edition of the DailyTelegraph still at 318,000 printed copies, a drop of twelve percent compared to the previous year. Since then, print circulation has probably continued to decline. In return, the number of digital subscriptions increased.
The question remains as to who is now bidding to buy the newspapers. In London there is speculation about all sorts of potential buyers, including Axel Springer Verlag (Picture), who was interested in the Telegraph Media Group back in 2004. DMG Media (Daily Mail) from Great Britain, the Dutch Mediahuis group (De Telegraaf) and sovereign wealth funds from Saudi Arabia and Qatar. There are also rumors in London that Paul Marshall, a well-known hedge fund manager and Brexiteer, is at the telegraph could get in. In this case, at least one thing would fit: the political orientation.