The boards of the Guardian Media Group and its owner, the Scott Trust, have announced that they in principle approved the sale of the Observer to Tortoise Media.
The new ownership model will protect the Observer's future, championing the voice of liberal values and investing in journalism while building its digital offering, added the boards.
As part of the deal, the Scott Trust says it 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.
Tortoise Media says it has 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.
Taken together, these measures will ensure that the core values and principles of the Scott Trust are upheld under the new ownership structure, added the boards.
It is expected the deal will be signed in the coming days.
Ole Jacob Sunde, chair of the Scott Trust, said: "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. We are looking forward to being part of the next phase in the Observer’s journey.”
Katharine Viner, editor-in-chief of Guardian News & Media, 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, its 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."
Charles Gurassa, chair of the Guardian Media Group board, said: “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. For the Guardian, it means we can double down on our long-term growth strategy, as we continue to expand globally and across digital and other media channels.”
Anna Bateson, chief executive of Guardian Media Group, said: “This investment will preserve the Observer's 233-year legacy and protect the paper’s future, ensuring it can continue producing exceptional liberal journalism, online and in print, for years to come. Underpinning it all will be a continued commitment to promoting a free press and maintaining editorial independence.
“The deal also supports the long-term success of the Guardian, building on our growth globally and across digital, as we continue to put readers at the heart of our outstanding journalism.”
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