The Observer newspaper’s sale to Tortoise Media has been confirmed after a deal was signed by The Scott Trust and Guardian Media Group (GMG).
James Harding will take on the role of editor-in-chief while Lucy Rock has been appointed editor (print), the first woman to oversee the newspaper in 100 years.
The Observer is being bought by Tortoise Media through a combination of cash and shares. The total consideration has not been announced.
Tortoise Media has also 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 will have a nine per cent stake in Tortoise Media and will join new and existing investors by committing £5m into Tortoise Media as part of the £25m investment.
The Scott Trust will also take a seat on the commercial board, chaired by Matthew Barzun, President Obama’s ambassador to the UK, and a seat on the editorial board, chaired by Sir Richard Lambert, the former editor of the Financial Times.
In a statement, the trust and GMG said that Tortoise Media has also “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”.
Lucy Rock, editor of the Observer newspaper, 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.”
Ole Jacob Sunde, chair of the Scott Trust, added: “This deal secures fresh investment and ideas for the Observer that will take the title to new audiences and enhance the role liberal journalism plays in our society.
“We have taken steps to enshrine our values in the new ownership structure and the Scott Trust will continue to play an important and active role in the Observer’s future through an ownership stake and board membership.”
Charles Gurassa, chair of the Guardian Media Group board, said: “This marks an exciting new chapter for the Observer and the Guardian.
“This deal creates the right environment for both titles to thrive, ensuring editorial independence and increasing investment in agenda-setting journalism.”