US investment firm RedBird Capital has withdrawn from its plan to purchase the Daily Telegraph and Sunday Telegraph for £500 million. The decision surprised many in the media and finance sectors, especially since the deal had already cleared major funding hurdles. Yet, concerns over regulatory scrutiny and foreign investment limits appear to have influenced the move.

The earlier proposal from RedBird faced rejection when officials raised issues about funding ties to Abu Dhabi’s IMI group, owned by the Abu Dhabi royal family. After lawmakers introduced a law restricting foreign sovereign wealth funds to a 15% stake in British newspapers, RedBird adjusted its offer to comply. Even so, sources indicate the government still planned a full regulatory review, which created uncertainty around the acquisition.

Instagram | @smashibusiness | Sheikh Mansour’s IMI group faces growing scrutiny as RedBird Capital retreats from the Telegraph takeover amid political pressure.

Reports suggest RedBird also encountered questions about its financial backing from China and Gulf-based investors. Because of these complexities, the firm chose to withdraw before any formal review began.

The Daily Telegraph remains in a state of uncertainty. For over two years, the publication has awaited stable ownership since RedBird IMI paid off debts tied to the Barclay family. As negotiations collapse again, the search for a new buyer continues, shaping another chapter in the newspaper’s turbulent history.