Tortoise in talks to buy Observer | City AM and weekly Standard do distribution deal
And friends and family share their memories of The Telegraph's David Knowles
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The story of the day is news that The Observer is likely being sold to Tortoise Media.
Guardian Media Group is in exclusive talks with James Harding's slow news outfit over the deal which is now being presented to staff but looks more likely than not to happen.
GMG last tried to get rid of The Observer in the late 2000s, when it mulled turning it into a weekly magazine.
The sale of the loss-making title will help GMG to curb what it calls "cash outflow", currently running at £36.5m, and so enable the Scott Trust to better fulfil its purpose of protecting the journalism of The Guardian (not The Observer) in perpetuity.
GMG's motives are therefore clear, but those of Harding less so. Tortoise has so far failed to find a market for online long-reads and has instead become a podcasting company largely funded by advertising.
The Observer's circulation is no longer publicly shared, but I would guess it is between 50,000 and 80,000 copies per week - declining at 10-15% per year. Harding has said he plans to invest £25 million over five years but that could quickly get swallowed on infrastructure for the new stand-alone brand.
However, quality newspapers have done well though in the digital age with The Times titles, FT and Telegraph all returning healthy profits. So perhaps a paywalled Observer could be a winner?
And although daily newspapers are rapidly running out of road, weekend editions could have a longer shelf life (perhaps even an indefinite one, albeit for a more rarified readership).
Harding's backers have deep pockets, among them David Thomson, a multi-billionaire with journalism in his blood. His grandad Roy once owned hundreds of newspapers including The Times titles and The Scotsman. Thomson idolises Sir Harold Evans and could well be the man to help reinvigorate liberal campaigning journalism at The Observer.
The Spectator's recent £100m price tag has underlined the value in long-established journalism brands and perhaps helped convinced Harding's backers that a bargain-basement deal to buy The Observer is worth a punt.
Meanwhile, it is all-change in the London free newspaper scene, where City AM will become the UK capital’s only dedicated (almost) daily from the end of this month and will be distributed in bins formerly used by the Evening Standard. The new London Standard is dropping its free distribution to just 150,000 and will be made available in the same bins from Thursday afternoon until Sunday night.
And finally, we have an in-depth tribute to Telegraph journalist David Knowles who died aged just 32 on holiday in Gibraltar. He probably did as much as any journalist to provide a voice for victims of the war in Ukraine and also sounds like he was a great bloke. Our account of his life is well worth your time.
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New from Press Gazette
Guardian considers sale of Observer to Tortoise after reporting £36.5m deficit for 2023/24
Scott Trust chair Ole Jacob Sunde said: “We must be honest about areas of the business that are not part of our future growth and adapt.”
City AM and rebranded weekly Standard sign distribution deal
The new co-branded bins will be found at 530 distribution points across Zone 1 to 6 of London. Currently City AM goes out to 430 bins.
David Knowles: Telegraph journalist who made huge impact in a short life
Knowles had a “ceaseless curiosity” and an “infectious enthusiasm” that could sometimes be “overwhelming for those on the receiving end of it”, his mother said.
News in brief
The Evening Standard has appointed Albert Read, the managing director of Condé Nast in the UK, as its new executive chairman as it prepares to become a weekly publication from next Thursday. (Press Gazette)
Global will begin staging live recordings of some of its podcasts, beginning with “The News Agents Live On Stage”, which will be held at the Royal Albert Hall on Sunday 1 December. (Global)
Graydon Carter's Air Mail has reportedly hired investment bank Raine Group to explore a sale. (The New York Times)
Previously on Press Gazette
BBC’s Clive Myrie paid at least £66,000 by police, financial services industry and others
Toolkit to help journalists overcome ‘unspoken power dynamic’ in sensitive interviews
Huw Edwards given suspended six-month sentence over indecent images charges
Four columnists quit Jewish Chronicle over standards, secrecy and ‘bias’
Press Gazette live
The event is open to all journalists producing work targeted at a UK audience. The criteria stipulate that reports must bring important new information to light, show journalistic skill and rigour and make a difference for the better.
The awards pit the smallest local newspapers and independent podcasters against the biggest international news organisations. The great leveller is the quality of the story being told.