Guardian Signs Controversial Deal to Sell The Observer to Tortoise Media

By Evans Momodu
4 minute read


The Guardian Media Group (GMG) has confirmed it is moving forward with the sale of The Observer, the world’s oldest Sunday newspaper, to the digital media company Tortoise Media, despite significant controversy and a strike by journalists protesting the decision.

Under the deal, GMG's parent entity, the Scott Trust, will make a £25 million investment in The Observer and take a seat on Tortoise Media’s board. The Scott Trust will also become one of Tortoise Media’s largest shareholders.

The move marks a major shift for The Observer, which has been part of GMG since 1993 and was founded in 1791.

Key Details of the Deal:

• New Ownership: Tortoise Media, chaired by Matthew Barzun (a former U.S. ambassador to the UK), will assume control of The Observer, with commitments to preserving the paper's legacy and promoting progressive journalism.
• Financial Backing: The Scott Trust’s £25 million investment is intended to support long-term development.
• Journalist Protests: The decision has been met with a two-day strike by journalists at The Guardian and The Observer, expressing concerns about editorial independence and the motivations behind the sale.
• Competing Bids: The deal proceeds despite interest from rival suitors, including eco-entrepreneur Dale Vince.

Tortoise Media's Vision:

Tortoise Media founder and editor James Harding described the acquisition as an opportunity to renew The Observer while upholding its legacy of liberal and progressive journalism. He emphasized a commitment to maintaining its role as a "defender of human dignity" and ensuring its relevance in modern media.

The sale reflects broader challenges facing traditional media organisations as they navigate financial pressures and evolving consumer habits.

Tortoise Media, established six years ago, is known for its focus on slow, in-depth journalism, which contrasts with the fast-paced, breaking news model of many traditional outlets.

The deal is expected to be finalised in the coming days, marking the beginning of a new chapter for The Observer.
Source: Sky news