The Daily Telegraph’s Parent Company Selects Goldman Sachs for Auction of Newspaper Publishers
The newly appointed directors of The Daily Telegraph’s parent company have chosen Goldman Sachs to oversee an auction that is expected to fetch around £600m, according to sources. The Wall Street investment banking giant was selected after competing against several rival banks, with a public announcement expected later today. The auction is set to begin in the autumn, with potential buyers sought for The Daily and Sunday Telegraph, as well as The Spectator, a current affairs magazine chaired by Andrew Neil.
The appointment of Goldman Sachs comes after Lloyds Banking Group, the principal lender to the Telegraph’s former owners, placed one of their holding companies into receivership. Telegraph Media Group (TMG) recently reported a rise in pre-tax profits to approximately £39m in 2022, citing a successful digital subscriptions strategy and strong cost management as contributing factors.
The sale will be overseen by a new board of directors led by Mike McTighe, who chairs Openreach and IG Group. McTighe was named chairman of Press Acquisitions and May Corporation, the parent companies of TMG and The Spectator. Lazard, the investment bank, has been advising Lloyds on its options, while AlixPartners was appointed receiver over B.UK Ltd, the Bermuda-based entity controlling the Telegraph titles.
A sale for £600m or close to it would result in a significant writeback for Lloyds, which had previously written down the loan. Aidan Barclay, the nephew of Sir Frederick Barclay, chaired the newspapers until last month. Prospective bidders for the auction include rival newspaper publishers such as DMGT, owner of the Daily Mail, as well as wealthy individuals like hedge fund tycoon Sir Paul Marshall and Czech businessman Daniel Kretinsky.
Lloyds and TMG have declined to comment on the matter.