German media giant Axel Springer has thrown its weight behind a rival bid for Britain’s Telegraph Media Group, backing a £500 million offer led by U.S. publisher

Dovid Efune, according to a spokesperson and a source familiar with the talks.

The move sets up a direct challenge to a previously announced takeover by DMGT, which agreed in November to acquire the Telegraph titles for roughly the same price. That deal, valued at about $675 million, has since come under regulatory scrutiny amid concerns over competition and the public interest.

Efune, who publishes The New York Sun, is leading a consortium that has submitted a fresh proposal with a notably different structure. While matching DMGT’s headline valuation, the new bid reportedly includes a larger upfront cash payment, minimal use of debt and, crucially, is not expected to trigger regulatory objections, a source said.

The bid was first reported by the Financial Times, which disclosed Axel Springer’s role as a key backer. Other supporters include British investors Jeremy Hosking and David Smith, as well as another high-net-worth UK-based investor.

The Telegraph’s current owner, RedBird IMI, did not immediately respond to requests for comment, nor did Telegraph Media Group itself.

If regulators ultimately approve DMGT’s takeover, it would place the Daily Telegraph and Sunday Telegraph under the same corporate roof as the Daily Mail, Mail on Sunday, Metro and The i Paper creating one of the most influential right-leaning media groups in the country.

Efune’s bid, however, could offer regulators an alternative path, potentially reshaping the future ownership of one of Britain’s most storied newspaper brands. Photo by Jörg Zägel, Wikimedia commons.