The deal, which was agreed in principle in early December, will see Tortoise’s editor and founder, James Harding, take up the role of editor-in-chief at The Observer, with the paper’s acting editor, Lucy Rock, moving to being its print editor.
Tortoise has said it will invest £25m into the paper, combining its own digital newsroom with that of the Observer to build a daily digital Observer over 2025.
The first print edition to be published under new ownership is expected in spring 2025, with GMG contracted to sell print and distribution services to The Observer for five years, with sales and new revenues likely to help shore up an unsteady financial position at The Scott Trust.
In September 2024, The Scott Trust reported a 2.5% drop in sales for the year to March 2024 in a difficult advertising climate, with adjusted operating losses jumping from £18.8m to £35.9m. Talks over the sale were revealed alongside its results.
The cash and shares purchase, however, has overcome stiff opposition from within GMG’s ranks, with staff walking out on strike for the first time in more than 50 years for two 48-hour strike actions.
“The Observer has a historic place in the world of journalism and a special place in the heart of its readers,” said Harding.
“We’re excited to put all we have into making sure its values, interests and passions reach even more people in the many years to come. We respect the fact that people have had different views on the best way forward for The Observer. We all share a passionate belief in its future and the privilege of working for it.
“We can’t wait to bring the brilliant people in both our newsrooms together and get to work on the journalism we care about. I’m absolutely delighted that Lucy Rock, following in the footsteps of Rachel Beer, the first woman to edit a national newspaper, will become editor of print, bringing her integrity, thoughtfulness and judgment to bear on The Observer each and every Sunday.”
National Union for Journalists (NUJ) members passed a motion in November saying the sale would be a “betrayal” of the Scott Trust’s commitment to the Observer, expressing concerns that the sale to the loss-making Tortoise might jeopardise the paper’s future, with the sale made over-hastily and without consulting with journalists.
An overwhelming 93% of NUJ ballots voted in favour of strike action.
Laura Davison, general secretary at the NUJ, said: “NUJ members at the Observer and Guardian have fought to defend quality journalism and to maintain the editorial independence and excellence of the Observer as part of Guardian Media group.
“The overwhelming response to the strikes this month reflects the unique standing of the Observer. The public understood the deeply felt concerns of employees and of the NUJ.
“They also understood our grave concern at the failure of the Scott Trust and management to engage with the NUJ and their own staff. That was a departure from the long established tradition of the Trust and management and gives cause for serous concern."
Emma Sullivan, managing director of Tortoise, said: “The whole team at Tortoise is excited about bringing together our newsrooms.
“We recognise the scale of the challenge in creating something whole and brilliant out of two different cultures and backgrounds, but we’ll approach the job optimistically and respectfully and, together with our new colleagues from The Observer, we’re absolutely confident that we can create something much greater than the sum of its parts.”
