LONDON (AP) — A significant acquisition in the media landscape has occurred as a consortium led by U.S. investment firm RedBird Capital Partners has reached an agreement to purchase the publisher of the iconic 170-year-old Daily Telegraph newspaper. The deal is valued at approximately 500 million pounds, equivalent to about $674 million, confirmed by both parties on Friday.

The agreement comes in principle, with RedBird set to become the controlling owner of the Telegraph Media Group. This development concludes a lengthy takeover saga for the conservative publication, which has garnered attention due to its political affiliations and historical significance in British journalism.

Gerry Cardinale, founder and managing partner of RedBird, expressed enthusiasm about the acquisition, stating that this transition signifies the beginning of a new era for The Telegraph. Cardinale emphasized a forward-looking approach, highlighting plans to grow the Telegraph brand both within the U.K. and internationally. He pointed out intentions to invest in technology and expand the subscriber base, which is crucial for the newspaper's sustainability in a rapidly changing media environment.

The Telegraph Media Group was previously owned by the Barclay family and was put up for sale two years ago as part of efforts to mitigate the family's financial debts. The group not only publishes the Daily and Sunday Telegraph newspapers but also oversees the weekly newsmagazine The Spectator, a publication that maintains close ties with Britain's Conservative Party. The ownership transition reflects the challenges faced by traditional media outlets in adapting to modern economic pressures and shifts in public consumption habits.

Earlier in 2023, RedBird IMI, a consortium that includes RedBird Capital Partners and Sheikh Mansour bin Zayed Al Nahyan, a prominent member of Abu Dhabi's royal family, made headlines with an offer to acquire the publications. However, this bid was retracted the previous year. The withdrawal was largely influenced by strong opposition from the U.K. government, which proposed legislation aimed at blocking foreign state ownership of the British press, showcasing the regulatory complexities surrounding media ownership in the U.K.

In a separate transaction, The Spectator was sold off in September to British hedge fund investor Paul Marshall, which signifies a strategic move in the realignment of media assets in the market. The distinct paths taken by The Telegraph and The Spectator underline the evolving dynamics within the media industry, where strategic investments and ownership changes could redefine their operational frameworks.

Telegraph Media Group's chief executive, Anna Jones, praised RedBird Capital Partners for their ambitious growth strategies. She indicated that these plans are designed to build upon the existing successes of the Telegraph while unlocking its full potential across its various business segments, suggesting a promising future as the company looks to modernize and expand its offerings in an increasingly competitive landscape.