The Guardian’s owner is pushing ahead with the sale of the world’s oldest Sunday newspaper to a fledgling digital media company, just hours after scores of journalists went on strike to protest the deal.
Guardian Media Group (GMG) and its parent company, Scott Trust, confirmed on Friday that the sale of The Observer to Tortoise Media – first reported by Sky News – would continue.
As part of the deal, Scott Trust will become a major shareholder in Tortoise Media, with a £25m investment in The Observer having been raised by the six-year-old start-up.
The Scott Trust will also have a seat on the board of directors of Tortoise Media, chaired by Matthew Barzun, the US ambassador to the UK under President Obama.
Founded in 1791, The Observer will change hands for the first time since 1993 – with the deal coming with long-term management commitments from its new owner.
The deal, however, sparked huge controversy, with journalists from the paper’s current publisher going on strike for two days this week.
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A number of unidentified rival suitors have expressed interest in buying The Observer through letters sent by legal representatives, while eco-entrepreneur Dale Vince has also said he would be interested in the acquisition .
On Friday, the parties said the agreement would be “finalized and signed in the coming days.”
James Harding, editor and founder of Tortoise, said: “We are honored and excited to work together to renew The Observer, a name that represents the best of liberal and pioneering journalism.
“We promise his readers that we will do everything in our power to live up to his story as a defender of human dignity and breathe new life into him as a powerful and progressive voice in the world. »
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Ole Jacob Sunde, chairman of the Scott Trust, dismissed criticism of the sale, saying: “We knew we needed the right mix of resources and commitment to build a new platform for The Observer.
“We needed a sufficiently funded, long-term ally who respected editorial independence and liberal values. I believe we found this in Tortoise Media.
“We look forward to being part of the next phase of The Observer’s journey. »
Further strike action remains possible among Guardian staff, with this decision expected to be discussed in the coming days.