Tortoise Media has reached an agreement in principle to acquire the Observer, the world’s oldest Sunday newspaper, from the Guardian Media Group.
As part of the deal, the Scott Trust, which owns the Guardian Media Group, will become a key shareholder and secure seats on Tortoise Media’s editorial and commercial boards.
The £25 million deal includes commitments to sustain the Observer’s print edition while turning it into a standalone digital brand.
Scott Trust chair Ole Jacob Sunde stated: “We knew we needed the right combination of resources and commitment to build a new platform for the Observer.
“It required an ally to be sufficiently funded, long-term in nature and respect editorial independence and liberal values. I believe we have found this in Tortoise Media.”
Guardian Media Group chair Charles Gurassa added: “This is an important new chapter for the Observer, giving it access to much-needed investment, enabling it to build a long overdue digital presence and ensuring it the top-level management support and focus necessary for it to flourish.”
According to The Guardian, no job losses are anticipated following the takeover.
However, the deal has caused controversy, with unionised Guardian and Observer journalists earlier this week staging a 48-hour strike to protest the deal.
National Union of Journalists members called the deal a “betrayal” of Scott Trust’s commitment to the masthead.
Commenting on the deal today, Katharine Viner, the editor-in-chief of the Guardian, said: “I recognise 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, readers and the future of both the Observer and the Guardian.
“It is a model that will see investment in journalism and journalists, enshrines the Scott Trust’s values in the Observer’s future, and protects the Observer and Guardian’s ability to continue to produce trusted, liberal journalism.”