Stay informed with free updates
Simply sign up to the Media myFT Digest — delivered directly to your inbox.
Paul Zwillenberg, former chief executive of the publisher of the Daily Mail, has stepped back from his role working with hedge fund manager Sir Paul Marshall on the takeover of the Telegraph newspaper for a new global role at Accenture.
Zwillenberg is set to be announced as global leader of the media practice at the management consultancy, according to people familiar with the situation, advising global media businesses on their digital and financial transformation.
The former managing director and senior partner at Boston Consulting Group will in particular focus on using Accenture’s investment in generative artificial intelligence to help media businesses grow, they added.
However, the move will mean that he will step back from his role working on a bid to buy the Telegraph as part of Marshall’s team. The media executive has been working with the hedge fund manager — who is being backed by US investor Ken Griffin — on a potential offer for the Telegraph since last autumn.
The move reflects wider frustrations about the drawn-out process of the newspaper’s sale, with an attempted deal by RedBird IMI, the US investment group backed by Abu Dhabi cash, blocked by the government this year.
During that period, other potential bidders, including former Telegraph editor Will Lewis, have taken new roles. The long delay also means that the newspaper’s future ownership could be scrutinised by a Labour government rather than Conservative ministers, given the election next month.
Most of the potential buyers will face regulatory and competition scrutiny to buy a newspaper that aligns closely to the Conservative party, which is likely to lead to further delays.
Zwillenberg will be able to continue to provide advice to Marshall while at Accenture. A person close to the bid team of UnHerd Ventures — the group leading Marshall’s bid — said they looked “forward to continuing to work with Paul in his new role”.
Zwillenberg declined to comment. A spokesperson for Marshall declined to comment.
RedBird IMI has sent out non-disclosure agreements to potential bidders, with bankers advising on the deal having held early talks with interested parties. These include Rupert Murdoch’s News UK, DMGT — which owns the Daily Mail — and National World, the regional newspaper group.
The decision by the government to block RedBird IMI’s bid means the newspaper has not had a permanent owner for more than a year, with Lloyds Banking Group first beginning the process after seizing control from previous proprietors, the Barclay family.
Lloyds then sold the debt behind the newspaper to RedBird IMI, allowing it to take ownership of the Telegraph.
A new sale was kicked off last month by RedBird IMI to recoup the £600mn spent on acquiring the debt. The group is also selling the Spectator magazine, which those close to the process say is more likely to be sold separately to the Telegraph given it faced fewer regulatory issues.
First-round bids for the group are set to be called in the next few weeks, they added.
Zwillenberg’s decision to join Marshall’s team raised eyebrows in the UK media industry given his close relationship with DMGT, a rival party interested in buying the Telegraph.
Until 2022 Zwillenberg was chief executive of DMGT and sat on the board. He oversaw the restructuring and delisting of DMGT, leaving the Rothermere family in full control of the company.
