The Scott Trust, which owns The Guardian, is examining an investment in Tortoise Media as part of negotiations for the potential sale of The Observer. Meanwhile, Tortoise Media has committed to a £25 million investment in The Observer over the next five years, with approximately half of that sum to be deployed in the first year. This significant investment is intended to drive the newspaper's editorial and commercial renewal.
James Harding, founder of Tortoise Media and former editor of The Times, aims to increase The Observer's paying readership by 50% to 173,000. He forecasts that the newspaper could break even by 2027, when it achieves a combined print and digital subscriber base of 134,000. Digital subscribers are projected to constitute about two-thirds of the total readership by 2029. The turnaround plan includes implementing a paywall on The Observer's website, with a target monthly subscription fee of £10, similar to The Spectator, which could generate over £20 million annually in audience revenues.
Despite the proposed investment and growth plans, the initiative has met with skepticism from staff at The Observer, with former editors and prominent cultural figures expressing concerns. The Scott Trust, a charity established to fund The Guardian, has confirmed it is engaging with Tortoise Media over the potential sale, acknowledging the uncertainty for staff. The deal, if approved, would also see the Scott Trust become a key shareholder in Tortoise Media, taking seats on both its editorial and commercial boards.
Tortoise Media's financial performance in 2022 saw revenues of £6.2 million and pre-tax losses of £4.6 million. In comparison, The Spectator, recently sold for £100 million, generated £20.8 million in revenue and £4.8 million in profits, with about 93,000 subscribers. Tortoise's plans for The Observer also include supplementing income through live events and advertising, areas they believe are currently under-exploited by Guardian Media Group.
Journalists at The Observer and The Guardian recently went on a 48-hour strike in protest of the sale, supported by 93% of union members and prominent public figures. However, the boards of the Scott Trust and Guardian Media Group have since approved the sale in principle, emphasizing that the deal ensures continued investment in journalism, safeguards the Scott Trust's values, and protects the Observer's future, both in print and digital formats. The agreement also commits to continuing to print the newspaper on Sundays and to not publish rival editions on the same day as Guardian News & Media.
