The Scott Trust Ltd., the owner of Guardian Media Group, announced Friday that it has agreed in principle to sell The Observer to Tortoise Media in an equity-based deal. The transaction will see the six-year-old media startup invest £25 million ($32 million) in the historic Sunday newspaper while gaining a strategic ally in The Scott Trust.
Equity Stake and Strategic Alliance
Under the agreement, The Scott Trust will take an undisclosed equity stake in Tortoise Media and secure representation on the company’s editorial and commercial boards. Tortoise Media, co-founded by former Times editor James Harding, has committed to maintaining The Observer’s Sunday print edition while transforming it into a robust digital publication.
The Scott Trust described Tortoise Media as an ideal partner to uphold The Observer’s editorial independence and liberal values. “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,” said Ole Jacob Sunde, chair of the Scott Trust.
Sale Announcement Amid Industrial Action
The deal comes after months of speculation following Guardian Media Group’s September disclosure of plans to sell The Observer, which it has owned since 1993. The announcement led to unrest among staff, culminating in a two-day strike earlier this week, the first industrial action at The Guardian in over five decades.
