The proprietor of The New York Sun, a conservative American publication, is contemplating an unexpected proposal to become the new proprietor of The Daily Telegraph.
Sky News has learned that Dovid Efune, who took ownership of the previous daily broadsheet in 2021, has shown interest in obtaining one of Britain’s most prominent daily newspapers along with its Sunday counterpart.
Mr. Efune, who additionally serves as the chairman of The Algemeiner, a Jewish publication that initially printed in Yiddish but now appears in English.
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Mr. Efune is being counseled by the boutique investment banking firm Liontree, while on Wednesday evening, Semafor, a US news outlet, reported that he has financial support from Oaktree and Hudson Bay Capital, along with the family office of hedge fund manager Michael Lefell.
The Daily and Sunday Telegraph are anticipated to change ownership for a sum between £400 million and £500 million.
A deadline for formal proposals has been established for September 27, with National World, the London-listed entity overseen by David Montgomery, and Sir Paul Marshall—who recently disbursed £100 million for The Spectator—also expected to be probable bidders.
Until now, Mr. Efune has not been connected to the bidding process in public, although industry insiders indicated that he first initiated inquiries about a bid when the original auction for the Telegraph titles began last year.
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One insider mentioned that a management presentation has been arranged for him with executives from the Telegraph.
In an editorial published earlier this year, Mr. Efune stated: “At the Sun, we believe that the potential is greater than ever for any newspaper that is designed to prioritize the reader above all else.
“To paraphrase Charles Dana, a newspaper ‘must correspond to the needs of the people. It must provide the type of information that the public seeks, or it will never thrive.’
The Telegraph auction is being managed by advisers to RedBird IMI, the Abu Dhabi-backed organization which was impeded in its attempts to acquire the media titles due to a shift in ownership legislation.
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Another proposal spearheaded by Nadhim Zahawi, the former chancellor, is under bilateral discussions with IMI, the Abu Dhabi-based entity that attempted to secure a controlling interest in the British media holdings before being obstructed by government regulations.
Sky News disclosed exclusively last month that Sir Paul was in the lead to purchase The Spectator, which, alongside the Telegraph titles, was owned by the Barclay family until their respective holding companies were compelled into liquidation last year.
RedBird IMI, a collaboration between IMI and the US-based investor RedBird, paid £600 million last year to acquire a
A call option designed to transform into equity ownership.
A transaction involving The Spectator for £100 million would necessitate the sale of the Telegraph titles for £500 million to fully recover that expenditure—additional sums would be required once RedBird IMI’s fees and related expenses in the process are included.
Among the unsuccessful contenders for the Telegraph, Lord Saatchi, a former advertising tycoon, proposed £350 million, while Mediahuis, the Belgian publishing company, similarly failed to advance to the next stage of the bidding.
Lord Rothermere, the owner of the Daily Mail, withdrew from the bidding earlier this summer due to apprehensions that he might be obstructed on grounds of competition.
Sky News recently disclosed that Mr. Zahawi had approached Boris Johnson, the previous prime minister, regarding a managerial position with The Daily Telegraph if he succeeded in acquiring the newspapers.
IMI is overseen by Sheikh Mansour bin Zayed Al Nahyan, the UAE’s deputy prime minister and the ultimate owner of Manchester City Football Club.
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The debt owed to Lloyds, which exceeded £1.15 billion, was settled by RedBird IMI on behalf of the family.
RedBird IMI’s efforts to gain control of the Telegraph titles and The Spectator were obstructed by the former Conservative government’s change in media legislation aimed at restricting foreign entities from influencing national newspapers.
RedBird IMI refrained from providing comments, while Mr. Efune has been approached for remarks.
