The owner of The New York Sun is in exclusive talks to buy the Telegraph in a deal worth around £550 million.
Dovid Efune, the British-born publisher of the US news website, has six weeks to strike a deal for the historic UK newspaper business.
It is the latest twist in a lengthy ownership battle for the Telegraph Media Group after its buyout by an Abu Dhabi-backed fund was blocked by the Government.
It is not known how Mr Efune will fund the deal and he is reportedly still in talks with potential backers including Ashcroft Partners and the billionaire Koch family’s Stand Together organisation.
This unique institution has a storied history as a pillar of the British press, dedicated to providing readers uninhibited, clear-eyed coverage of the most consequential issues of the day
Dovid Efune
The 39-year-old and his team will now have access to the Telegraph Media Group’s accounts to carry out due diligence.
In a statement in the Telegraph, Mr Efune said: “The Daily Telegraph and Sunday Telegraph symbolise the very best of world-class, independent journalism and a commitment to relentlessly seeking the public interest.
“This unique institution has a storied history as a pillar of the British press, dedicated to providing readers uninhibited, clear-eyed coverage of the most consequential issues of the day.
“As a lifelong newsman – variably as reporter, columnist, editor, and now publisher – I believe strongly that these values, in general, are fundamental to the advancement of any journalistic enterprise.
“It’s with these principles that The Telegraph is best positioned for even greater success going forward.”
Mr Efune is also the chairman and former editor of Jewish publication the Algemeiner Journal.
Remarks posted on social media site X over the Israel-Gaza conflict and Mr Efune’s pro-Israel stance have come under scrutiny, while the UK regulators will likely be looking at any potential impact of a takeover on the newspaper’s editorial independence.
A sale deal would take the Telegraph out of the hands of Abu Dhabi-backed media investor RedBird IMI.
RedBird IMI took control of the media business when it was put on the market last year in order to help previous owners, the Barclay family, repay heavy debts to lenders at Lloyds bank.
It is an investment fund majority-owned by Sheikh Mansour bin Zayed Al Nahyan, vice president of the United Arab Emirates (UAE) and owner of Manchester City Football Club.
The deal drew fierce criticism over free speech concerns before it was ultimately blocked by the Government earlier this year.
As a result, RedBird IMI launched a fresh sale process to sell it on to a new buyer.
It is understood that Mr Efune outbid rivals including Yorkshire Post publisher National World and hedge fund tycoon Sir Paul Marshall.
Sir Paul recently took control of the Spectator political magazine business in a £100 million deal, after it had also been put back on the market by RedBird IMI.
RedBird IMI declined to comment.