Why the Telegraph sale will be a litmus test for the future of print journalism

The sale of City AM to The Hut Group (THG) in August set a positive, if non-traditional precedent, for the industry. The sale of the city business paper to a retail group was somewhat unexpected, but did give the print industry a vote of confidence that investor interest remained.

Now, enter one of the UK’s, and World’s, biggest newspaper groups. The Telegraph, which has a readership of over 1 million people a week across print and online, has been put up for sale by its owners. The newspaper’s position as one of the UK’s most influential titles, with ties to the UK Government, has prompted frenzied interest from across the modern media landscape.

With diminishing sales figures suggesting a demise of print journalism and the impact of the lightning-fast changes in media habits – consumers and advertisers are increasingly headed online to a digital world dominated by the likes of Twitter and TikTok – national newspapers sold each day in the UK have dived to less than 3 million. (Enders Analysis)

However, the digital age has stepped in to ballast the futures of the UK’s biggest newspapers. Despite a valuation of near £750 million, bidders are not expected to be put off contesting for the privilege of purchasing a stronghold of British Journalism.

Whilst figures of print readership have dwindled, the industry has bounced back in the midst of the COVID-19 downturn. But why? How? And what does this sale mean?

Ownership Models

Despite the news of media mogul, Rupert Murdoch, stepping down from his role as the Head of News UK, the industry has been making some headway on making up for reduced physical newspaper sales. In fact, the financial stability of editorial titles is at a newfound high. 

The shift to recurring, growing income streams is triggering renewed interest from investors and shareholders, and, according to The Guardian, the transformation has been even more dramatic at the Times, with profits climbing from £44m in 2021 to £80m last year. The introduction of a paywall in 2010 has transformed the paper’s fortunes over the past 13 years.

More recently, the Guardian Media Group represents a prime example of adaptability in the space. Back in 2016, The Guardian reported a £69m annual loss. Fast forward to 2023, more than 1.1 million multi-platform subscribers underpinned a record £264.4m in revenues in the publisher’s most recent annual results, with digital reader revenues accounting for 31% of the total.

Advertising

The transformation of the UK media to focus on paid partnerships and advertorial opportunities has been integral to the survival of UK tabloids and broadsheets. The value of the UK national newspaper advertising market stands at £600m this year, down 50% on this time last year. However, this still makes up a significant portion of income for national newspapers.

The Daily Mail Group & Reach PLC publications have long been utilising print and digital advertising as a primary source of income, and targeted, specific partnerships between the broadsheets and brands have been emerging with great success over the past decade.

So, what now for the communications industry?

Well, aside from watching on with bated breath, the new owner of the Telegraph Media Group will define how PR and communications industries as a whole will work with the TMG moving forward.

The Telegraph's digital focus will likely remain central, but the direction of travel from an editorial standpoint will depend on the owner's intention. Interest has come from all directions, with German Media conglomerate, BILD, supposedly interested alongside middle eastern investors, american heavyweights such as the Citadel Hedge Fund (in collaboration with Sir Paul Marshall, co-owner of GB News) and domestic heavyweights, it is set to be a critical juncture for PR, communications and advertising as a whole.

With a dedicated and talented editorial team that expands across a multitude of sectors, the future of the Telegraph will no doubt be a positive one with a continued focus on world-class journalism.

However, from an industry standpoint, this sale will likely set a value of saleable assets, of which all key stakeholders, analysts and investors will likely be keen to keep an eye on.