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Leon Black, the co-founder of Apollo Global Management, has held talks about backing the £550mn bid to buy the UK’s Telegraph newspaper by Dovid Efune, owner of the New York Sun.
The talks with Black have not yet been finalised in a deal, according to two people familiar with the situation. Efune has had trouble in finding the money for his bid, which he first mounted in the autumn. The hope is that Black’s investment could prove “decisive” for Efune, the people added.
Efune’s advisers have been talking predominantly to Black’s son Ben Black, who founded the investment firm Fortinbras, said the people. The potential new anchor investment would be made by Fortinbras, they added. Leon Black stepped down from leadership roles at Apollo in 2021 after his ties to the late sex offender Jeffrey Epstein emerged.
The future of the right-leaning British newspaper group has been in question since its takeover by RedBird IMI, backed by money from Abu Dhabi, was then blocked by the UK government last year after concern about foreign states buying British news organisations.
The Barclay family who owned the Telegraph Media Group lost control of their media assets 18 months ago over unpaid debts to Lloyds Banking Group. RedBird IMI agreed to buy the Telegraph and its sister magazine The Spectator before the UK government intervened.
Todd Boehly, co-owner of Chelsea Football Club, is also in talks with Efune about backing his bid, or even launching a rival offer, the Financial Times has previously reported. According to people close to the situation, those discussions are still ongoing alongside talks with Black, whose potential involvement was first reported by the Wall Street Journal.
Black and Efune did not respond to requests for comment. RedBird IMI declined to comment.
LionTree’s Aryeh Bourkoff, whose boutique investment bank is advising Efune, has this month been in the UAE to talk directly with IMI, the Abu Dhabi investment group that owns the Telegraph alongside US-based Redbird, according to two people close to the situation. LionTree could also invest in the deal, they added.
Efune was in exclusive talks to acquire the newspaper from RedBird IMI until December, but has since remained in discussions despite the lack of a guaranteed deal.
Talks with new financial backers, as well as the direct conversations with IMI, could give fresh impetus to Efune’s bid, the people close to the discussions said. RedBird IMI advisers are also in talks with officials in the UK government about the progress of the deal, with hopes that if an agreement is struck that sign-off from the authorities will happen quickly.
However, Efune’s attempts to secure money for his bid from US funds have fallen away in the past, people cautioned.
