Editor-in-chief Will Lewis has been appointed managing director of the new digital arm of the business.
Lewis will lead a team of 50, which TMG says will “capitalise on cutting edge ideas and driving new revenue streams”.
The venture is being funded by a multimillion-pound investment from Aiden Barclay, chairman and owner of TMG.
Murdoch MacLennan, chief executive of TMG, says: “I believe now is the time to fast forward to the next stage of our digital transformation using the Telegraph’s powerful brand and reputation.” He adds that the new business will help the group “better serve its customers”.
Lewis will retain his role as editor in chief of The Daily Telegraph, Sunday Telegraph and Telegraph.co.uk.
Former deputy editor, Tony Gallager has been promoted to editor of the Daily Telegraph while Benedict Brogan, formerly assistant editor and chief political commentator becomes deputy editor.