The owner of Britain’s Guardian newspaper confirmed the sale of The Observer, the world’s oldest Sunday newspaper, to Tortoise Media on Wednesday. The deal, finalized for an undisclosed fee, was announced by the Scott Trust, which oversees the Guardian Media Group. Tortoise Media will acquire the historic publication through a combination of cash and shares.
The Observer, established back in 1791 and integrated with the Guardian Media Group since 1993, holds its position as a stalwart of liberal journalism and values within the UK's media scene. James Harding, Tortoise Media’s co-founder and former editor of the Times, expressed enthusiasm about the acquisition, asserting, "The Observer has a historic place in the world of journalism and a special place in the heart of its readers. We’re excited to put all we have to make sure its values, interests and passions reach even more people in the many years to come." This sentiment echoes Tortoise's commitment to respect and uphold the publication's time-honored values.
Under the terms of this sale, Tortoise Media has agreed to enter a five-year commercial partnership with Guardian Media Group (GMG). This entailment includes financing for both print and distribution services, alongside collaborative marketing ventures leveraging the Guardian's infrastructure. Ole Jacob Sunde, chair of the Scott Trust, elaborated on the deal's importance, stating, "This deal secures fresh investment and ideas for the Observer, enhancing the role liberal journalism plays in our society." The Scott Trust, too, will maintain a 9% stake within Tortoise Media, demonstrating its enduring investment interest.
Enhancing the transition period, Tortoise committed to investing £25 million, with £5 million sourced directly from the Scott Trust. A significant portion of this funding will target the establishment of The Observer’s independent digital identity, which has been noted as secondary to the Guardian's extensive online presence.
The proposed sale, unfortunately, has not been met without controversy. Journalists from across the Guardian Media Group staged a 48-hour strike earlier this month, voicing their concerns over the transaction and its potential impacts on The Observer's future. This situation highlights the deep-seated feelings and divisions among media personnel, with many advocating for alternative ownership approaches. Among these alternatives was Dale Vince, founder of Ecotricity, who presented his offer to retain The Observer within his green foundation's trust-based structure, but was eventually outbid.
To lead The Observer post-sale, Tortoise has announced the appointment of Lucy Rock as the publication’s print editor, marking her as the first woman to assume this role in its century-long history. She is set to work alongside both Harding as editor-in-chief and the forthcoming digital editor, making pivotal strides toward establishing The Observer’s own vibrant online brand.
While the elements of The Observer’s transition to Tortoise Media seem promising, the shadow of dissent remains palpable. Harding acknowledged the varied opinions surrounding the sale, stating, "I respect... people have had different views on the best way forward for the Observer." This acknowledgment indicates Tortoise’s willingness to address concerns of the staff as they adjust to new changes.
The first edition of The Observer under the Tortoise banner is expected to achieve publication by spring. The imminent transition sets the stage for The Observer to explore new horizons, targeting inclusivity and digital growth without compromising its valued legacy.
Overall, this shift not only embodies the dynamism of modern journalism but also incapsulates the challenges and opportunities contemporary media faces, as it seeks to navigate the intricacies of local sentiments and digital transformation.
