LONDON – The sale of the Observer, the world's oldest Sunday newspaper and a bastion of liberal values in Britain's media landscape, was approved Friday despite two days of strike action from journalists this week.
The Scott Trust, the owner of the Guardian Media Group, which includes the Observer and its sister paper the Guardian, said the sale to Tortoise Media is expected to be signed in the coming days.
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The Scott Trust said it will invest in Tortoise Media, becoming a key shareholder, and take a seat on both its editorial and commercial boards.
Under the terms of the deal, Tortoise will invest 25 million pounds ($32 million) in the Observer, which was founded in 1791 and became part of the Guardian Media Group in 1993, and has committed to continue its Sunday print edition and build up its digital brand.
It has also committed to safeguarding journalistic freedom and the editorial independence of the Observer, undertaking to honor the “liberal values and journalistic standards” of the Scott Trust in its editorial code.
Tortoise was launched in 2019 by James Harding, a former editor of the London Times and director of news at the BBC, and the former U.S. ambassador to London, Matthew Barzun.
Harding said the Observer name represents “the best of liberal, pioneering journalism,” and promised readers that "we will do all we can to live up to its history as a defender of human dignity and to give it a new lease of life as a powerful, progressive voice in the world.”
Ole Jacob Sunde, who chairs the Scott Trust, said the Observer needed “an ally to be sufficiently funded, long-term in nature and respect editorial independence and liberal values.”
Journalists at both the Guardian, which publishes print editions between Monday and Saturday and has a deep digital footprint around the world, and the Observer, have protested the sale and went on a 48-hour strike on Wednesday and Thursday. Though the Guardian is clearly the bigger brand, especially in the digital space, the two newspapers had a very close relationship, operating from the same building in London and sharing resources.
“I recognize how unsettling this period has been for Observer staff but we’re confident we have agreed the best possible way forward for the title’s journalists, its readers and the future of both the Observer and the Guardian," said Katharine Viner, editor-in-chief of Guardian News & Media.
Members of the National Union of Journalists from both papers will meet later Friday to consider next steps, its general secretary-elect Laura Davison said.
“The timing of the decision, before the end of two extremely well-supported days of action, is particularly shabby," she said.
Giao Pacey, a partner at media and entertainment law firm Simkins LLP, said the Observer's new leadership will have to be careful in safeguarding the value of the newspaper, which is intrinsically linked to its brand, established over centuries.
“Once the sale is completed, the leadership team will need to strike the right balance between preserving the legacy, culture and integrity of the business while ensuring that it has sufficient resources and support to thrive in a rapidly evolving market,” said Pacey.