Consortium led by RedBird agrees to buy Telegraph for £500m

A consortium led by the US private equity company RedBird Capital has agreed to buy the Telegraph for £500m, potentially ending two years of uncertainty over the title's future.

- Mark Sweney

RedBird's founder, Gerry Cardinale, has signed a deal in principle that will take the Daily Telegraph and Sunday Telegraph under the ownership of a consortium that includes British investors.

"This transaction marks the start of a new era for the Telegraph as we look to grow the brand in the UK and internationally, invest in its technology and expand its subscriber base," Cardinale said. "We believe the UK is a great place to invest [and] we have tremendous conviction in the growth potential of this incredibly important cultural institution."

RedBird, which said it would become the sole controlling owner, has been in talks with potential investors including Lord Rothermere's DMGT, the owner of the Daily Mail, Metro and New Scientist, about taking a stake of 9.9%.

Rothermere, who tried to buy the titles in 2004, pulled out of the auction last summer because DMGT feared it would be drawn into a long and complex battle over competition issues and political hurdles.