The proprietor of The Guardian is moving forward with the acquisition of the esteemed world’s oldest Sunday newspaper by a nascent digital media firm, mere hours after numerous journalists staged a walkout in opposition to the transaction.
Guardian Media Group (GMG) along with its parent organization, the Scott Trust, confirmed on Friday that the transfer of The Observer to Tortoise Media – initially reported by Sky News – will advance.
As part of the agreement, the Scott Trust will become one of the primary stakeholders in Tortoise Media, contributing a £25m investment for The Observer, which has been procured by the six-year-old startup.
The Scott Trust will also secure a position on the board of Tortoise Media, chaired by Matthew Barzun, who served as the US ambassador to the UK during President Obama’s administration.
Since its establishment in 1791, The Observer will change ownership for the first time since 1993 – with the agreement accompanied by pledges for long-term stewardship by its new proprietor.
The agreement has ignited considerable debate, however, as journalists from the newspaper’s current publisher participated in a two-day strike earlier this week.
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Guardian journalists go on strike
A number of undisclosed competing bidders have shown interest in acquiring The Observer through correspondences from their legal representatives, while eco-entrepreneur Dale Vince has also expressed his desire to purchase the publication.
On Friday, the involved parties stated that the transaction would be “finalized and executed in the upcoming days”.
James Harding, editor and founder of Tortoise, commented: “We are privileged and enthusiastic about the opportunity to collaborate on rejuvenating The Observer, a name embodying the finest in liberal, groundbreaking journalism.
“We assure its audience that we will strive to honor its legacy as a champion of human dignity and breathe new life into it as a robust, progressive voice globally.”
Ole Jacob Sunde, chair of the Scott Trust, dismissed the backlash regarding the sale, asserting: “We recognized the necessity for the appropriate blend of resources and dedication to establish a fresh platform for The Observer.
“It required a partner capable of providing sufficient funding, with a long-term vision that respects editorial independence and liberal principles. I am convinced we have found that partner in Tortoise Media.
“We eagerly anticipate participating in the next chapter of The Observer’s evolution.”
Further strike actions could occur among Guardian personnel, with discussions on this move expected in the upcoming days.
