Twenty-six leading former Guardian and Observer writers have written an open letter condemning the actions of The Scott Trust as the CEO of the titles sought to calm ongoing outrage over the sale of The Observer.
The letter’s signatories include poet Blake Morrison, novelist Julian Barnes and leading journalists such as Decca Aitkenhead, Hadley Freeman and Nick Davies.
The latest open letter (published exclusively in Press Gazette below) follows letters expressing similar sentiments in The Guardian itself from former Observer editor Paul Webster, a group of some 125 current Guardian and Observer staff and a group of 42 current and former contributors to The Observer foreign pages.
The latest letter expresses outrage that The Scott Trust, which owns Guardian Media Group, voted through the sale of The Observer to Tortoise while journalists were in the midst of a strike in protest at the deal.
CEO Bateson meanwhile has written to staff offering answers to some of the questions raised in these letters such as: why was the deal apparently rushed through, why is The Scott Trust investing £5m in the new Observer/Tortoise and why were no other bids considered?
Bateson’s updates follow below the latest open letter.
Letter: Guardian and Observer writers ‘across the generations’ express horror at Scott Trust actions
“We are former writers and editors at The Guardian and The Observer. Many of us have never met, and we span the generations. But one truth connects us all: we loved and love the newspapers. And because of that, we have been horrified at the recent decisions made by The Scott Trust in regards to Tortoise Media’s offer to buy The Observer.
“We are not naive: we understand the media landscape and have seen – in many cases, experienced – the financial challenges faced by newspapers globally. We also understand that some will say it is not our place to speak up, given we left the papers. But as CP Scott wrote, a newspaper is not just a business – it is an institution within a community, and we are all lifelong members of The Guardian community, which includes all who read the papers and all who have written for them. And it seems to us clear that the Scott Trust has profoundly failed The Guardian community.
“We have been astonished to learn of how little communication there has been between members of the Trust and journalists at The Observer, to the point that the chair of the Trust, Ole Jacob Sunde, could not name a single journalist in the meeting confirming the sale last week. This is a far cry from the Trust we remember, and it is an even further one from the original point of the Trust, which was to be guided always by the journalists.
“Instead, this Trust has ignored the 93% of Guardian and Observer staff who voted to strike in protest of the sale, further ignored the universal criticism of the sale from other newspapers across the political spectrum, and then – shockingly – voted to approve the sale in principle, while staff were still on strike. This kind of shabby corporate behaviour would be condemned by The Guardian and The Observer were any other newspaper boards engaging in it, and rightly so.
“We have no specific criticism of Tortoise Media, and many of us know James Harding. But it is inexplicable that the Scott Trust agreed to enter into exclusive negotiations with Tortoise, instead of shopping around for a more established owner for The Observer. If the Trust was determined to sell The Observer, why not at least seek a better price, as is entirely usual in all business dealings?
“The Guardian and The Observer are still filled with fantastic journalists and editors, many of the best in the country. But if the Scott Trust is so bad at business and so bad at maintaining relations with the papers’ journalists, what is the Scott Trust even for anymore?”
Signatories: Decca Aitkenhead, Julian Barnes, David Benedict, Rob Biddulph, Julie Bindel, Martin Bright, Victoria Brittain, Nick Davies, Priya Elan, Kathryn Flett, Hadley Freeman, Simon Garfield, Nicci Gerrard, Allan Jenkins, Olivia Laing, Debbie Lawson, Emma Lilly, Robert McCrum, Stephanie Merritt, Suzanne Moore, Blake Morrison, Helen Oldfield, John Palmer, Lucy Siegle, Jonathan Steele and Molly Tait-Hyland.
CEO Anna Bateson’s answers to staff questions over Observer sale
Guardian Media Group CEO Anna Bateson has circulated answers to questions raised by staff about the sale of The Observer to Tortoise Media including the following:
“Why has there been secrecy around the deal?
“The approach from Tortoise Media was disclosed as soon as was practicably possible. When it became clear the offer was serious we investigated further and in September decided to tell staff we were considering the proposal, briefing Observer staff first. Observer staff were in that briefing meeting being told about the proposal when it broke in external media.
“Since September meetings have taken place with the Observer team as well as NUJ and Unite union representatives to ensure both those most affected and the wider organisation have been kept as informed as we are able.
“But why not pause the process for a few months?
“If the Scott Trust and GMG had felt more time was needed to satisfy them, they would have taken that time. They made clear during the talks that they would not be rushed. We have not received any bids containing any substantive detail from any party other than Tortoise Media.
“Why didn’t you hold meetings with the whole company sooner?
“Meeting with the Observer team has always been our priority, as the team most affected by the sale. Since September, when the Observer team was first told about the proposed sale we have held meetings with the Observer senior team and consulted with both unions who have been representing the views of their members throughout the process.
“When it became clear that there was a significant amount of false information and misunderstanding in some of the media reporting about the deal, Kath invited all Observer and Guardian editorial colleagues to small team briefings. There have also been opportunities to meet with managing editors and HR one-to-one throughout this consultation period.
“What about the other bids? Have the Scott Trust and GMG looked at alternatives?
“A thorough scoping exercise was done at the outset of this process to understand who else might be a potential investor. We have not received bids containing any substantive detail from any party other than Tortoise Media. Tortoise will invest £25m into the Observer’s journalism, they have the infrastructure of a successful, existing newsroom with experienced journalists, they have a group of investors who are committed for the long term and they are honouring the liberal values and journalistic standards of the Scott Trust in their editorial code.
“Why the urgency when the Observer is bringing in revenue?
“While the Observer brings in revenue from cover price and advertising, that has to be offset against numerous shared costs; these include technology, ad sales, marketing, rent, finance and HR as well as sport, international and business journalism. If they were included in a detailed audit, the Observer would already be loss-making.
“This is about an attractive deal that will protect and expand the Observer’s future. Doing nothing is not an option.”
“The Scott Trust has a £1.3bn endowment fund. Why can’t it support the Observer?
“The Scott Trust’s defining purpose is to secure the financial and editorial independence of the Guardian in perpetuity. The fund has to be protected to ensure the future of the title long into the future in an uncertain world. The Observer, with its new platforms and fresh investment, will have more freedom to be financially sustainable when separated from the Guardian.
“Why is the Scott Trust willing to give £5m to Tortoise – but says it will not invest in the Observer if it stays with the Guardian?
“As part of the deal, the Scott Trust will invest £5m in Tortoise Media and become one of its largest shareholders.
“While the £5m from the Scott Trust would have not gone far enough to build the Observer for a sustainable future in isolation, as part of a bigger overall £25m investment, and added to a talented digital team already in place at Tortoise, it provides the Observer with opportunities that it would not get if it remained here.
“The Observer, under this new ownership structure, will have access to new investment, fresh ideas, and Tortoise’s digital platforms to develop a sustainable digital brand and identity to reach audiences in new ways.
“What does this mean for the Guardian?
“We continue to work towards the Guardian’s long-term financial sustainability. While there is still work to do to make our business ever more digital, more global and more reader funded, the strategy is working. From doubling down on our supporter strategy, to further investment in key areas and new platforms, it is important to commit to further growth.
“Now solely focused on one title, the Scott Trust and Guardian Media Group will focus on its strategic priorities, investing for global growth as we put readers at the heart of our journalism and remain competitive in a challenging media environment.”
Email pged@pressgazette.co.uk to point out mistakes, provide story tips or send in a letter for publication on our "Letters Page" blog
