The Scott Trust, owner of The Guardian and The Observer newspapers, has entered negotiations to become a significant shareholder in Tortoise Media, amidst ongoing discussions regarding the sale of its Sunday publication. These strategic talks could potentially secure the Trust a board position at Tortoise Media, potentially easing the path towards the contentious sale of The Observer.
The exclusive negotiations between Tortoise Media, steered by former BBC News and Times editor James Harding, and the Scott Trust have been underway since September. The proposed deal has met substantial resistance from journalists at both publications, culminating in plans for a two-day strike action – the first industrial action to affect the company since 1971.
Staff concerns centre on The Observer’s financial sustainability and job security under the ownership of Tortoise, a start-up that has accumulated losses exceeding £16 million since its 2018 inception. The situation has drawn attention from Labour donor and green energy entrepreneur Dale Vince, who has expressed interest in acquiring The Observer should the current negotiations falter.
The Scott Trust’s board, managing assets valued at £1.3 billion, reportedly agreed during a Monday meeting to pursue investment in Tortoise, maintaining influence over The Observer’s future direction. This strategic move could grant the Trust significant sway in both commercial and editorial decision-making at Tortoise.
The potential partnership would align the Trust with Tortoise’s existing prominent shareholders, including Thomson Reuters chair Lord David Thomson, Nando’s magnate Robby Enthoven, and South African businessman Gary Lubner. The Trust’s spokesperson confirmed ongoing discussions, emphasising their commitment to securing optimal outcomes for staff, readers, and liberal journalism’s future.
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