Tortoise signs deal to buy The Observer

Tortoise is pleased to announce that it has signed a deal to buy The Observer from The Guardian Media Group and The Scott Trust.

Tortoise will invest £25 million and combine its digital newsroom with that of the world’s oldest Sunday newspaper, adding significant new editorial resources to the paper on a Sunday and building a daily digital Observer that includes podcasts, video, newsletters and a new website.

The first Observer under Tortoise ownership is expected to be published in the spring. Tortoise has committed to meet all the key employment terms for any members of staff, as well as freelancers and contributors, who wish to continue to work on The Observer.

Lucy Rock, currently the Acting Editor of The Observer, will become Editor (Print) of The Observer. James Harding, editor and founder of Tortoise, will be Editor-in-Chief.

The investment will be focused on establishing The Observer’s own digital identity, creating a dedicated commercial team and increasing its editorial resources. Over the course of 2025, Tortoise expects to build the daily digital Observer in arts, ideas and news as well as The Observer’s own network of foreign reporters and contributing editors, a new business and economics team, expanded science, technology and health coverage and a dedicated sports desk.

Tortoise is purchasing The Observer through a combination of cash and shares. In addition, Tortoise has agreed a five-year commercial agreement with GMG, which will see it pay for both print and distribution services, as well as marketing through The Guardian.

The Scott Trust has, additionally, made an equity investment in the company, underlining its commitment to the success of an independent Observer and broader support for liberal journalism.

All investors, including the new key shareholders This Day, the philanthropic investment fund of Gary Lubner, and Standard Investments, the related investment platform of the global industrial company Standard Industries, have signed up to the principle of editorial independence and a long-term commitment to The Observer. The company has enshrined the principles of journalistic freedom and editorial independence in its Articles of Association.

The Scott Trust will have a seat on the company’s board, which will be chaired by Matthew Barzun, President Obama’s ambassador to the UK. The Trust will also take a seat on the editorial board, which will be chaired by Sir Richard Lambert, formerly editor of the Financial Times. The company board will be expanded from seven to nine members, the majority of whom will be non-executive directors.

Matthew Barzun said: “This process revealed the enormous regard and passionate connection so many have to the world’s oldest Sunday newspaper. I am deeply appreciative of our investor partners, including the Scott Trust, all of whom expect the highest quality independent journalism. We are filled with an awesome sense of responsibility as we become a part of its long story and participants in sharing the stories it will long keep telling.”

James Harding said: “The Observer has a historic place in the world of journalism and a special place in the heart of its readers. 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.”

Lucy Rock said: “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. As the latest steward of the world’s oldest Sunday newspaper, I am committed to preserving and protecting its liberal, independent, internationalist values. 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.”

Richard Lambert, chair of the editorial board, said: “The Observer matters. In a noisy marketplace, it has an independent and progressive voice, covering ideas and stories that don’t get proper attention elsewhere. Its editorial comments are shaped by its journalists rather than by other interests. These values must be supported, and I’m keen to do anything I can to help.”

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”.