Daily Mail Parent Risks Credit Downgrade Over £500M Telegraph Takeover

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Daily Mail Parent Risks Credit Downgrade Over £500M Telegraph Takeover

Daily Mail Parent Company Faces Credit Downgrade Risk Over Telegraph TakeoverIn a surprise move, Lord Rothermere's Daily Mail and General Trust (DMGT) has announced a £500 million deal to acquire the Telegraph…

Ropa Ushe Private Equity Research Analyst

November 27, 2025 2 min read

82% Signal strength

Daily Mail Parent Company Faces Credit Downgrade Risk Over Telegraph Takeover

In a surprise move, Lord Rothermere's Daily Mail and General Trust (DMGT) has announced a £500 million deal to acquire the Telegraph media titles from current owner RedBird IMI. However, the acquisition has raised concerns from credit ratings agency S&P Global, which has placed the parent company, Rothermere Continuation Holdings Ltd (RCHL), on "credit watch" over the potential deal.

According to S&P analysts, the significant valuation of the Telegraph assets, relative to RCHL's "modest size and scale," could "materially increase its adjusted leverage beyond our threshold" if the company takes on substantial debt to fund the transaction. RCHL, the Jersey-based holding company for Lord Rothermere's media assets, including the Daily Mail, Mail on Sunday, Metro and the i Paper, currently holds a BB- long-term issuer credit rating from S&P.

The ratings agency warned that the "detail and funding of the transaction remain unclear," but expressed concerns about RCHL's "limited headroom" to accommodate additional financial debt, given the structural challenges facing the print media industry. The Telegraph titles are seen as operating in "structurally challenged newsprint and advertising markets," potentially adding further strain to RCHL's balance sheet.

The proposed £500 million price tag for the Telegraph represents a significant investment for DMGT, which will need to secure appropriate financing to complete the deal. Industry analysts note that the valuation reflects the continued decline of traditional print media assets, with the Telegraph titles likely commanding a lower multiple compared to previous transactions in the sector.

The acquisition comes as DMGT seeks to bolster its position in the UK media landscape, potentially leveraging the Telegraph's brand and audience to drive synergies with its existing portfolio. However, the ratings warning from S&P highlights the financial risks associated with such a transformative deal, particularly given the broader headwinds facing the print media industry.

Investors and industry observers will be closely monitoring the progress of the proposed transaction and any potential impact on RCHL's credit profile in the coming weeks as the company works to finalize the funding arrangements.

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The proposed £500 million acquisition of the Telegraph media titles by Daily Mail and General Trust (DMGT) has raised concerns from credit ratings agency S&P Global. The significant valuation of the Telegraph assets compared to DMGT's 'modest size and scale' could materially increase the parent company's Rothermere Continuation Holdings Ltd (RCHL) leverage, potentially leading to a credit downgrade if the deal goes through as planned.

DMGT's Adjusted Leverage Ratio

DMGT's Current Adjusted Leverage 2.5

Industry Average Leverage 3.2

S&P's Downgrade Threshold 3.5

Pro Forma Leverage After Telegraph Acquisition 4.1

Telegraph Asset Value Compared to RCHL's Scale

Telegraph Acquisition Value 500

RCHL's Total Assets 1800

RCHL's Equity Value 800

RCHL's EBITDA 300

RCHL's Revenue Breakdown

Daily Mail & General Trust – 60% Euromoney Institutional Investor – 20% Other Investments – 20%

Research Brief

Dec 2, 2025 | Senna Analysis

The proposed £500 million acquisition of the Telegraph by Daily Mail and General Trust (DMGT) represents a significant deal in the UK media landscape. This transaction highlights the ongoing consolidation and restructuring in the traditional print media industry as companies seek to diversify revenue streams and adapt to the digital age.

Key Takeaways

1 The deal will likely increase DMGT's leverage and debt levels, potentially leading to a credit downgrade by ratings agencies as they assess the company's financial profile post-acquisition.

2 For private equity professionals, this transaction demonstrates the strategic rationale behind media consolidation plays, as firms seek to gain scale, cross-sell products, and enhance their digital capabilities.

3 The acquisition also underscores the continued evolution of the media industry, where traditional print players are under pressure to transform their business models to compete with digital-native competitors and changing consumer preferences.

If completed, the Telegraph acquisition could provide DMGT with new growth opportunities, but the company will need to effectively integrate the asset and manage the increased debt load to maintain its credit profile.

Follow-on activity

Competitive response

Integration progress

Analysis generated by Senna Intelligence. For informational purposes only.

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