The Scott Trust, owner of the Guardian Media Group, has approved the sale of its newspaper, the Observer, to Tortoise Media. The deal is expected to be finalized in the coming days and will see Tortoise invest $32 million (25 million pounds) into the publication. Under the terms of the agreement, Tortoise will commit to continuing the Sunday print edition and expanding the digital brand of the Observer.
The sale was made despite two days of strike action from journalists at the Guardian and Observer this week. The Scott Trust has stated that it will invest in Tortoise Media and become a key shareholder, taking a seat on both editorial and commercial boards. Ole Jacob Sunde, chair of the Scott Trust, described the Observer as needing an “ally” to secure funding for the long-term.
The sale was met with skepticism from journalists at both papers, who have protested the deal. The National Union of Journalists said the timing of the decision, made before the end of two days of strike action, is “particularly shabby.” Giao Pacey, a partner at media law firm Simkins LLP, warned that Tortoise’s new leadership must balance preserving the legacy and culture of the business with providing sufficient resources to thrive in a rapidly evolving market.
Source: https://apnews.com/article/guardian-observer-britain-sale-strikes-tortoise-media-f522a7438dfc52f04aa243da3b253761