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The Labour party-funding owner of energy firm Ecotricity has told Byline Times he is “interested” in funding a breakaway media outlet staffed by disgruntled Observer staff, amid the title’s controversial sale to the website Tortoise.
On Thursday, industry title Press Gazette confirmed that a “legally binding” Business Purchase Agreement had been signed by Observer owner Guardian Media Group and Tortoise, run by former BBC executive James Harding.
It comes despite opposition among Guardian/Observer staff to the sale, which will see GMG owner The Scott Trust secure a nine per cent stake in Tortoise, while losing full control of the Observer, the world’s oldest English language Sunday newspaper.
Hundreds of staff at the Guardian group have joined two waves of strikes over the move, garnering support from figures ranging from singer Billy Bragg to senior Labour MP Emily Thornberry.
On the picket line last week, Byline Times heard rumours of a potential breakaway news outlet being considered by disgruntled Guardian/Observer staff.
Asked if he was aware of the discussions, Vince — who has given £5 million to the Labour Party — said: “I am aware, and I am interested.”
When news of the Observer-Tortoise deal became public this summer, Vince held meetings with senior figures at the firm and said he was willing to step in and purchase the publication instead. However, GMG said they were in “exclusive talks” with the Tortoise media in relation to a sale
Vince told Byline Times this Friday that Guardian bosses did not show him the financials underlying the Observer, making it difficult to proceed.
He added he was “disappointed” that the sale to Tortoise now appeared certain, but added: “If it’s not a done deal, or if Tortoise fails, I’m ready to step in.”
Asked if he would consider buying another outlet, he said: “I wanted to save the Observer, I don’t want to be a media owner for the sake of it.” Nonetheless, he is open to funding a website for departing Observer/Guardian staff, some of whom may take voluntary redundancy following the buyout.
Vince also called for the Government to get behind media reform, noting that much of Britain’s press was owned by foreign oligarchs — including Murdoch-owned News UK which runs The Times and The Sun.
“Foreigners like Rupert Murdoch – an Australian-born US citizen — should not be allowed to own our media,” Vince said, making clear this wasn’t “prejudicial” but about media owners having a firm stake in the country their outlets are covering.
“We need overhaul of media ownership in this country,” he added, pointing to a handful of firms running the majority of the local and regional press, and a small number of powerful newspaper owners having significant political sway.
Speaking to Byline Times on the picket line at Guardian/Observer HQ King’s Place last Friday, Simon Hattenstone — one of the longest serving writers at the organisation — said: “We’re one of the oldest newspapers in the world, and the financial proposals are bizarre.
“First, [The Scott Trust] said they were selling the Observer, then it became a giveaway, and now we’re giving them money,” referring to the £5 million investment being made by the current owners.
“It’s like someone coming to your house and asking you to pay them to take away your possessions,” Hattenstone, who has been with the title for 34 years, said.
“We’ve become a company obsessed with saving money at the expense of journalism,” he added.
Responding to claims that the Observer could die out as a brand without the Tortoise buy-out — which will see the paper continue and a new standalone Observer website launched — he said: “If execs are genuinely worried, they could simply change the Sunday website banner to ‘The Observer‘ — no one here would object. A deliberate decision was made in 2009 to bring the brands closer together.
“Developing its online identity makes sense, but saying it has no online presence would make most Observer staff laugh – they’re read by millions, as Guardian journalists. They’re happy having both identities. What they don’t want is to go from millions of readers to 20,000 behind a paywall.”
The National Union of Journalists member added: “I love this organisation and have dedicated my life to it. But the relationship with the Trust has broken down completely. We want the Scott Trust to change — we have no confidence in them because they don’t represent us.”
One striker said that Guardian editor Kath Viner had “lost the confidence of her staff,” and it would be hard to repair the rift. Viner had a salary of £528,000 last year.
Another added: “The Scott Trust isn’t really a trust anymore — it’s become a cartel generating profits at any human cost.”
Asked if they would be interested in a buy-out by Vince, one said: “If it’s better than the one we’ve been offered. Ideally, we’d like to stay here as part of GMG. But if not, we’d need something like a trust, similar to the Scott Trust.” Vince has said he is open to the idea.
Observer investigative journalist Carole Caddwalladr has written for Byline Times about Tortoise — and has been public about her opposition to the sale.
Byline Times sent the Guardian Media Group a list of questions about the sale but did not get a response.
A statement from The Scott Trust confirming the Observer sale on Wednesday said: “Tortoise Media is purchasing the Observer through a combination of cash and shares. In addition, Tortoise Media 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 will have a nine per cent stake in Tortoise Media.
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“The Scott Trust will join new and existing investors by committing £5m into Tortoise Media as part of the £25m investment.
“The Scott Trust will 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.”
Ole Jacob Sunde, chair of the Scott Trust, said: “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.”
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