We want what’s best for the Observer – and the Guardian. That’s why the deal with Tortoise makes sense | Ole Jacob Sunde

TThe Observer’s strategic direction was set several years ago – to strengthen its position as a leading liberal voice in the UK Sunday print market. This goal has been achieved, but in such a challenging media environment, it cannot stand still. The Observer needs to develop a sustainable digital position with a younger audience to ensure it can continue to be successful in the coming years.

After extensive internal and external consultation, the Scott Trust decided that this would be best achieved outside the Guardian Media Group and we approved the sale of the Observer in principle to Tortoise Media.

This decision was based on several non-negotiable conditions for the Scott Trust.

We would remain part owner of the Observer, with a seat on the editorial and commercial boards. The Observer will need to secure long-term funding from partners willing to invest in more journalists and journalism. Finally, all owners will need to embody the values ​​of editorial independence, press freedom and liberal journalism that have been part of the Observer’s ethos since we bought it in 1993.

Yesterday’s deal will allow the Observer to gain more resources as well as benefit from fresh ideas and expertise. Under the new ownership structure, the Observer will be the sole owner in the joint venture and will have funds to invest. Its identity and values ​​are incorporated into Tortoise’s governance to align with ours: “To have a materially positive impact on society and the environment and to protect journalistic freedom and liberal values.”

The Scott Trust will remain as an owner, becoming one of Tortoise’s largest shareholders. The joint entity will be overseen by a board and editorial board, and both entities will have a majority of independent directors. The Scott Trust will be represented on both the advertising and editorial boards. These measures meet the strict criteria we set at the beginning of this process.

Since the Scott Trust was established in 1936 we face challenges and opportunities to support progressive liberal journalism. Progress towards this goal has not always been easy. We are now entering a new phase for both our titles.

We recognize that the last few months have been challenging for Observer management and staff. But we have listened to their views and addressed them in the terms of the deal announced yesterday.

In reaching our conclusion, we also had the Guardian’s interest in mind. In 1959 Guardian dropped the word “Manchester” from its titleas his audience grew from regional to national. Today, the title is pursuing a strategy to go global, with thriving operations in the US and Australia.

The UK market is and will continue to be an important market for us. However, the reality is that it cannot support our editorial ambitions alone. We need to be able to attract a wider audience outside the UK.

In the last financial year, around 35% of the title’s revenue originated outside the UK, including 56% of revenue from digital readers. Last year, Guardian Media Group had an operating cash deficit of £36.5m, which was funded by the Scott Trust, as the trust has the primary responsibility to ensure the financial and editorial independence of the Guardian in perpetuity.

Some voices argue that we should have pause the transaction to have more time for reflection. I don’t agree. During this year, the status quo and possible futures for our two documents were analyzed by executives, external consultants and the boards of GMG and the Scott Trust.

We recognize that the Guardian and the Observer face different challenges that require different solutions. Since mid-September, when the potential transaction was made public, we have held numerous consultations with unions, staff and outside experts, including past editors, to listen and gain input and explain our perspective. This was important as rumors and half-truths flourished.

More analysis does not mean better analysis. We didn’t agree to this deal until we were happy with it. Now it’s time to renew.

Change in the Scott Trust’s century of existence is inevitable, but progress is not always linear. In news, we must change to continue to serve our readers. The Observer is the oldest Sunday newspaper in the world, but it hasn’t been around that long because it’s stationary. The only constant is its journalists. And the Scott Trust will still be there to support them as the title progresses, getting the attention it deserves.

I am confident that this next chapter will give the Observer and its team a fresh start, while staying true to its values, preserving an important liberal newspaper in the UK.