Tortoise Media acquires Observer newspaper as deal finalised

The sale of The Observer newspaper to Tortoise Media has been finalised, following a deal signed by The Scott Trust and Guardian Media Group (GMG). James Harding is set to become the editor-in-chief, while Lucy Rock will take on the role of editor (print), making her the first woman to oversee the newspaper in a century.

The acquisition of The Observer by Tortoise Media involves a mix of cash and shares, though the total consideration remains undisclosed. A five-year commercial agreement has also been established between Tortoise Media and GMG, which includes payment for print and distribution services, as well as marketing through the Guardian, as reported by City AM.

The Scott Trust will hold a nine per cent stake in Tortoise Media and will contribute £5m to Tortoise Media as part of a £25m investment. The trust will also have representation on both the commercial board, chaired by Matthew Barzun, former ambassador to the UK under President Obama, and the editorial board, chaired by Sir Richard Lambert, ex-editor of the Financial Times.

In a joint statement, the trust and GMG confirmed that Tortoise Media has pledged to "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".

Lucy Rock, the new editor of the Observer, expressed her enthusiasm about her role: "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."

She underscored her commitment to upholding the newspaper's values: "As the latest steward of the world’s oldest Sunday newspaper, I am committed to preserving and protecting its liberal, independent, internationalist values."

And she shared her vision for its future: "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."

Ole Jacob Sunde, chair of the Scott Trust, added his views on the deal: "This deal secures fresh investment and ideas for the Observer that will take the title to new audiences and enhance the role liberal journalism plays in our society. " He also pointed out the Trust's ongoing role: "We have taken steps to enshrine our values in the new ownership structure and the Scott Trust will continue to play an important and active role in the Observer’s future through an ownership stake and board membership."

Concluding the sentiments, Charles Gurassa, chair of the Guardian Media Group board, made a statement: "This marks an exciting new chapter for the Observer and the Guardian."