Guardian signs controversial deal to sell The Observer to Tortoise Media | Money News

The owner of The Guardian is pressing 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 in protest at the deal.

Guardian Media Group (GMG) and its parent, the Scott Trust, confirmed on Friday that the sale of The Observer to Tortoise Media – first reported by Sky News – would proceed.

As part of the deal, the Scott Trust will become one of Tortoise Media’s largest shareholders, 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 Tortoise Media, which is 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 accompanied by commitments to long-term stewardship by its new owner.

The deal has sparked enormous controversy, however, with journalists across the newspaper’s current publisher going on strike for two days this week.

A number of unidentified rival suitors have declared an interest in buying The Observer through letters sent by legal representatives, while the eco-entrepreneur, Dale Vince, has also stated that he would be interested in acquiring it.

On Friday, the parties said the deal would be “completed and signed in the coming days”.

James Harding, editor and founder of Tortoise, said: “We are honoured and excited at the prospect of working together to renew The Observer, a name that represents the best of liberal, pioneering journalism.

“We promise its readers we will do all we can to live up to its history as a defender of human dignity and to give it a new lease of life as a powerful, progressive voice in the world.”

Read more from Sky News:
The electric shock behind Europe’s stuttering EV future
Direct Line set to accept sweetened Aviva takeover bid

Ole Jacob Sunde, chair of the Scott Trust, brushed aside criticism of the sale, saying: “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.”

Further strike action remains possible among Guardian staff, with the move expected to be discussed in the coming days.