The chair of the Scott Trust sent a note all staff to say the Trust intended to press ahead with the sale of the Observer to Tortoise Media “within the coming days”Here’s a taste of it:
Collectively we have thought long and hard about this decision. We have listened to staff, many of whom we know hold strong views on the Observer’s ownership. Our priority has always been to make the best decision for the Observer and its staff, serve our readers, protect jobs and support teams so that the Guardian and the Observer can continue to promote liberal journalism and thrive in a changing media environment.
As part of the deal, the Scott Trust will invest in Tortoise Media and become one of its largest shareholders. The Scott Trust will take a place on both the company’s board, chaired by Matthew Barzun, President Obama’s ambassador to the UK, and its independent editorial board, chaired by Sir Richard Lambert, the former editor of the Financial Times.
There will be a £25m new investment in the Observer with a long-term commitment to print on a Sunday and a plan to build the Observer into a digital brand. And the Scott Trust will join new and existing investors who are committed for the long term.
Tortoise Media has also committed to safeguard journalistic freedom and the editorial independence of the Observer, undertaking to honour the liberal values and journalistic standards of the Scott Trust in their editorial code.
The joint NUJ chapel at the Guardian and Observer has issued this statement:
Guardian and Observer journalists are going on strike to oppose the deal transferring the Observer to Tortoise Media – rushed through, and done without the involvement of any Observer staff – because:
1. Putting the Observer behind a paywall does not promote or protect liberal journalism and will erode its reach
2. The deal has been done without testing the value of the Observer or inviting/considering other bids
3. The Observer is currently a successful part of Guardian Media Group. The paper’s journalism gets more than 10 million page views online every weekend. Its print circulation is around 106,000 and is a significant source of revenue.
The current proposed sale of the Observer is a worrying time for staff on the paper, who – along with Guardian journalists – have voted for industrial action. The Friends of the Observer, mostly former staffers and contributors, will attempt to update this site whenever we hear of developments.
Editor Paul Webster, who retired last week, slams Guardian for “two false premises” that the Observer’s operation poses a financial risk to the Guardian and that Tortoise Media could sustain the brand in print. And food writer Jay Rayner is poached by the FT.
https://pressgazette.co.uk/publishers/nationals/guardian-observer-tortoise-strike-december-2024/
Earlier background material:
On 17 September, the Guardian announced it was in talks to sell the paper to Tortoise Media.
On October 10 three former editors said the Scott Trust had a responsibility to maintain the Observer
The following day, the Scott Trust fired back, saying (in a nutshell) its responsibilities did not extend to the Observer.
On the same day, the ‘i’ newspaper revealed that the Guardian’s chief executive has had long-standing friendship with James Harding, holidaying together on a £15m superyacht.
On 1 November the Telegraph reported that a rival bid was being made to buy the paper.
https://www.telegraph.co.uk/business/2024/11/01/labour-linked-investors-gatecrash-sale-the-observer/