Daily Mail takes over Telegraph, pays $650 million

British media group DMGT, owner of the Daily Mail, has struck a deal to buy rival The Telegraph for about 500 million pounds ($650 million).

The acquisition will create a strong right-leaning media group in the United Kingdom.

The deal came shortly after US investment firm RedBird Capital withdrew its bid following opposition from members of The Telegraph's editorial staff. According to the Financial Times, the price was set to cover the costs of the previous consortium.

Terms are currently being finalised and regulatory documentation is being prepared. The whole process is expected to proceed quickly.

Although the Telegraph itself has not yet commented on the situation, a RedBird spokesperson confirmed that the deal will soon be submitted to the British Foreign Secretary.

(reuters, swag)