The Guardian's parent company has announced that it is in formal negotiations with Tortoise Media over the potential sale of The Observer, the world's oldest Sunday newspaper.
The Guardian Media Group (GMG) told Stuff it was in talks with the Observer after receiving enough proposals to be worth considering in more detail.
The company said it chose to be transparent about the negotiations, even though many of the details are commercially confidential.
Observer staff were told the offer from Tortoise represents a significant investment in the title as a standalone product that will help safeguard its future.
Anna Bateson, chief executive of Guardian Media Group, said: “This is a hugely exciting strategic opportunity for the Guardian Media Group – a chance to position the Observer for the future through significant investment, allowing the Guardian to focus on a more global, more digital and more reader-funded growth strategy.”
The Guardian's editor-in-chief, Katherine Viner, said: “This has the potential to be a huge positive for both the Observer and the Guardian. My number one priority is to ensure that both newspapers continue to thrive and provide high quality journalism to their readers. It is vital to me that the Observer, with its excellent journalistic reputation, loyal readership and tradition as the world's oldest Sunday newspaper, is in good hands.”
Founded in 1791, The Observer was bought by the Guardian Media Group in 1993. It has co-existed with The Guardian ever since, and regardless of the outcome of any negotiations, The Guardian will continue as a seven-day-a-week digital edition.
Tortoise was founded in 2019 by James Harding, a former editor of The Times of London and former news director at the BBC, and Matthew Barzun, a former US ambassador to the UK.
Tortoise said in a statement that it plans to continue publishing the Sunday Observer and build out a digital edition that combines podcasts, newsletters and live events. It said it plans to invest more than £25 million in the paper over the next five years.
Tortoise editor Harding said: “We consider the Observer to be one of the best-known newspapers in the news world and we believe wholeheartedly in its future, both in print and digital. We respect the values and standards established under the great stewardship of the Guardian and will uphold the Observer's uncompromising commitment to editorial independence, evidence-based reporting and journalistic integrity.”
“Like so many loyal readers, we admire the strength and heart of The Observer's journalism, appreciate its originality and free thinking, and love its passion for food, music, film and the arts. George Orwell described the Observer as 'the enemy of nonsense'. We are delighted to be able to show readers old and new that this still remains the case.”
GMG made the announcement as it published statutory financial statements showing its main subsidiary, Guardian News and Media, increased global digital reader revenue by 8% to £88.2m in 2023-24.
In recent years, the company has made it a priority to grow revenue from digital readers, keeping its journalism free for everyone on its website while focusing on expanding globally and driving financial support from its readers.
In the results, total revenue fell 2.5% year-on-year to £257.8 million, which GMG said reflected a slowdown in global advertising revenue and continuing structural pressures on its print business.
The company recorded net operating cash flow of £36.5 million, which it said reflected planned investment in the Guardian US and new Guardian European editions to increase its global reach and influence, as well as planned technology and product investment, including the launch of the new Guardian Feast cooking app.
The Guardian's chief supporter officer Liz Wynne said in July that the app had been downloaded more than 100,000 times since its soft launch in April.
