Guardian and Observer journalists strike over proposed sale

Journalists at the Guardian and Observer newspapers went on strike today over the planned sale of the Observer. An offer to buy the 233-year-old title by online publisher Tortoise Media has prompted accusations from journalists that such a deal would be a ‘betrayal’ by the Scott Trust – which owns the Guardian Media Group – of its commitment to the Observer.

The proposed buyer Tortoise Media – a start-up founded six years ago by former Times editor James Harding – has pledged a 25 million pound investment in the Sunday paper, despite not yet having made a profit.

We spoke to Guardian and Observer writer Carole Cadwalladr.

Cathy Newman: Carol, just sum up the strength of feeling on the picket line today.

Carole Cadwalladr: It was very, very determined. It was actually quite a carnival-like spirit. I think we Guardian and Observer journalists standing together in total solidarity, total strength of feeling and determination that this deal cannot go through because we believe that it will lead to the death of the Observer and the degradation of the Guardian’s journalism. And we’re going to fight to try and stop that.

Cathy Newman: Well, the Scott Trust very much disputes the idea that this would lead to the death of the Observer. But isn’t there a danger that the alternative is worse? Because you had this email through from the CEO of Guardian Media Group talking about difficult choices that would have to happen urgently if this sale to Tortoise didn’t go ahead. I mean, that means job cuts or worse, doesn’t it?

Carole Cadwalladr: No, absolutely. I mean, I think the really key thing is that there are options – but no attempt has been made to explore those options. Instead, what the Scott Trust decided to do was enter into an exclusive and confidential deal to negotiate a sale with one preferred bidder, Tortoise media. Since then, we’ve actually had three other bidders come forward who have also expressed an interest, and the board is so far refusing to even engage or look at those deals. So I think the idea that it’s way or the highway is a myth and a provocation actually.

Cathy Newman: Well just on those other bidders, I wonder how concrete they are because the Guardian Media group – I called them up about this this afternoon – and they said, we haven’t received any bids containing any substantive detail from any party other than Tortoise. So, I mean, is there anything really concrete on the table.

Carole Cadwalladr: That I mean, from what I understand, at least one of the bidders has said that if they know that they’re in a position to negotiate, they will make themselves public, they will disclose the details. But at the moment, we’re still in this mysterious and secretive exclusive negotiation period. We don’t -we’re not even sure when that ends. So the fact is, until those bidders know that they have a chance of negotiating in good faith, it’s not in their interest to go public at this time. Although one of them we know has put his name in the ring.

Cathy Newman: What, Dale Vince?

Carole Cadwalladr: He’s actually a third bidder, from what we understand.

Carole Cadwalladr: I think at this moment, all we are asking for as journalists – we’re saying ‘stop, pause, reflect.’ This is a 233-year-old newspaper. It was actually our birthday today. And the idea of trying to sort of stitch this up by Christmas in this rush for which we do not understand why there is such a rush. The Observer isn’t – even the management acknowledge – it’s not like the Observer is bleeding cash. We actually made a profit, well we contributed revenues to the Guardian this year. 3.4 million.

Cathy Newman: I mean, the CEO email I’ve already quoted from said that if shared costs were allocated, the Observer would in fact be loss-making itself. But on the finances…

Carole Cadwalladr: It’s extraordinary that the chair of the Scott Trust would put out a statement like that and then consider selling us to an organisation which doesn’t have any of those shared economies. The Observer at the moment, we share our foreign news reports, we share our business reports, we share our sports reporters. There are economies of scale that come from being within the Guardian, which we wouldn’t have if we went to Tortoise Media.

Cathy Newman: Just very briefly, people might be watching this and thinking, why do we care about a newspaper? Newspaper circulations are in decline and therefore the public interest in this story is very limited. What’s your answer to that?

Carole Cadwalladr: Our journalism – Observer journalism – goes out across the world to millions of readers, to a global audience as Guardian journalism. The Observer is the Guardian, and the Guardian is the Observer. And we know, you know, your viewers know, our readers know, that we are heading into deeply uncertain, troubling dark times. Journalism is going to be under attack as it never has been before. The idea of setting us free at this critical moment, I find it absolutely staggering and a profound degree of recklessness.