The US investment firm RedBird Capital Partners has formally withdrawn its takeover bid for Telegraph Media Group (TMG), publisher of the right-leaning Daily Telegraph and Sunday Telegraph newspapers, ending a deal that had valued the company at around £500 million (about $670 million).

The decision comes nearly six months after RedBird announced what was termed an “in-principle” agreement to acquire TMG, at a time when the media group was seeking a stable ownership solution amid the collapse of its previous arrangement with the Barclay family.

RedBird cited the protracted regulatory process and mounting internal resistance as key contributors to its withdrawal.

The consortium’s proposed structure had envisaged RedBird as the controlling shareholder, with the Abu Dhabi-backed International Media Investments (IMI) holding a minority stake capped at 15 per cent under UK rules.

However, concerns about foreign influence – particularly linked to IMI’s state-affiliated nature – and critical coverage from within the newspaper’s own ranks reportedly proved a drag on momentum.

In its statement RedBird emphasised that it “remains fully confident that the Telegraph and its world-class team have a bright future ahead of them” and declared its intention to “work hard to help secure a solution which is in the best interests of employees and readers.”

For its part, Telegraph Media Group said its immediate priority would be to “minimise disruption to the business and work with all stakeholders” including the government, as it moves to chart the next phase of its ownership.

The collapse of the bid throws into sharp relief the uncertain position of the papers, which have gone through multiple ownership upheavals in recent years.

Since the Barclay family’s indebtedness triggered a sale process, TMG has lacked a settled owner, and this latest turn raises questions about liquidity, strategic investment and the future editorial independence of the titles.

Regulators had flagged the proposed deal for review, with the UK government and media oversight bodies underscoring concerns about foreign state participation in national press assets.

The regulatory delays and reputational scrutiny are understood to have weighed heavily in RedBird’s decision to withdraw.

Several other suitors have been identified in preliminary discussions, including billionaire Sir Leonard Blavatnik and media company DMGT, though no binding offer has yet emerged.

The next chapter for the Telegraph is likely to involve a fresh auction or restructuring, with the clock now ticking for an owner that can ensure editorial stability and invest in TMG’s digital growth.