Staff at The Guardian and Observer have been told that the sale to the Sunday paper to Tortoise has been completed. Senior management sent an email on Wednesday morning confirming the of the controversial deal had gone through.
The email was signed by members of the Scott Trust, which owned the Guardian and Observer and effectively Guardian Media Group management. Per a staff member, the email was sent by Ole Jacob Sunde, chair of the Scott Trust Signatories included Guardian editor Katharine Viner. The email confirmed that Lucy Rock will edit The Observer:
We are delighted that Lucy Rock has been appointed editor (print) of the Observer, the first woman to oversee the newspaper in 100 years. Lucy will work alongside a digital editor, as the Observer builds its own online brand. Lucy will report to James Harding, who will be editor-in-chief of The Observer.
The email also said:
Tortoise Media is purchasing the Observer through a combination of cash and shares. In addition, Tortoise Media has agreed a five-year commercial agreement with GMG, which will see it pay for both print and distribution services, as well as marketing through the Guardian. The Scott Trust will have a 9% stake in Tortoise Media.
Governance
The Scott Trust will join new and existing investors by committing £5m into Tortoise Media as part of the £25m investment.All shareholders are committed to the long term independence of the business. The Observer cannot be sold in the first five years unless Scott Trust supports this. There are extensive protections in the shareholders’ agreement about selling the Observer after that point.
The Scott Trust will take a seat on the commercial board, chaired by Matthew Barzun, President Obama’s ambassador to the UK, and a seat on the editorial board, chaired by Sir Richard Lambert, the former editor of the Financial Times.
Tortoise Media has also 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.
Guardian News Media have issued a statement, that includes a comment from Rock:
It is a huge privilege to be entrusted with the editorship of the Observer newspaper and to lead its first-class team of reporters, commentators, critics and editors into a new era of its storied history.
“As the latest steward of the world’s oldest Sunday newspaper, I am committed to preserving and protecting its liberal, independent, internationalist values.
“I look forward to working with my colleagues as we continue to produce lively, provocative, award-winning pages week-after-week — and to joining the talented team at Tortoise to build a dynamic digital identity for the Observer.
There have been multiple days of strike in opposition to this sale. However, it is now done.
