The sale of the Observer newspaper to Tortoise Media has been approved, it was announced on Friday.
The move by the boards of its owner Scott Trust and the Guardian Media Group followed a 48-hour strike this week by journalists on the Observer and the Guardian in protest at the sale.
The Scott Trust said it will invest in Tortoise Media, becoming a key shareholder, taking a seat on both its editorial and commercial boards.
I recognise how unsettling this period has been for Observer staff, but we’re confident we have agreed the best possible way forward for the title’s journalists, its readers and the future of both the Observer and the Guardian
KATHARINE VINER, EDITOR-IN-CHIEF OF GUARDIAN NEWS & MEDIA
The deal will see £25 million in new investment for the Sunday newspaper, with a commitment to print the Observer on a Sunday and a plan to build it into a digital brand by the boards of the Scott Trust and Guardian Media Group, they announced.
Tortoise Media said it has 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.
It is expected the deal will be signed in the coming days.
Ole Jacob Sunde, who chairs the Scott Trust, said: “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.”
Katharine Viner, editor-in-chief of Guardian News & Media, said: “I recognise how unsettling this period has been for Observer staff, but we’re confident we have agreed the best possible way forward for the title’s journalists, its readers and the future of both the Observer and the Guardian.
“It is a model that will see investment in journalism and journalists, enshrines the Scott Trust’s values in the Observer’s future, and protects the Observer and Guardian’s ability to continue to produce trusted, liberal journalism.”