The Abu Dhabi-backed fund pursuing a takeover of The Telegraph (Telegraph Media Group Limited) is racing to finalise a separate £1 billion acquisition of All3Media Limited, the producer of the hit reality television show The Traitors. Advisers to RedBird IMI are working with their counterparts for All3Media's current owners, Liberty Global Ltd. (NasdaqGS:LBTY.A) and Warner Bros. Discovery Inc. (NasdaqGS:WBD), towards an announcement next week.

City sources cautioned that the timetable could yet slip amid last-minute legal wrangles. However, it is understood that Liberty Global, which is also 50% owner of the broadband and mobile operator Virgin Media O2 (VMED O2 UK Limited), hopes to confirm the sale alongside an update to its investors on February 8, 2024. The deal will be a landmark for RedBird IMI, which was founded little over a year ago and has so far completed only relatively small deals in the media industry.

The fund, led by Jeff Zucker, the former CNN Chief Executive, is 75% backed by Sheikh Mansour bin Zayed al Nahyan, the owner of Manchester City. Its planned investment in All3Media is highly unlikely to trigger controversy or regulatory security comparable to its attempted takeover of The Telegraph. Newspaper ownership is covered by specific laws intended to protect the public interest.

The takeover of The Telegraph is under investigation by Ofcom, which is due to deliver a report to Lucy Frazer, the Culture Secretary, by March 11. She will then decide whether to accept that undertakings from RedBird IMI, such as an editorial trust board, would protect press freedom, or refer the deal to the Competition and Markets Authority for months more scrutiny. The Telegraph first revealed RedBird IMI's interest in All3Media in November.

The producer's shareholders have been working with advisers from JP Morgan to find a buyer for a year. Warner Bros Discovery, RedBird IMI, Liberty Global and All3Media declined to comment.