secret-profit-numbers-leak-ahead-of-historic-newspapers-controversial-sale

Secret profit numbers leak ahead of historic newspaper's controversial sale

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Internal documents show The Observer making millions in profit‚ contradicting reasons for its planned sale. The 233-year-old newspaper faces uncertain future as key vote approaches

Internal data shows The Observer earned £3.4m profit last year which beats expected results by £300k: this info comes right before a big-deal vote about its future

The Scott Trust board (which controls the £1.3bn fund that owns the paper) needs to decide about selling the worlds oldest Sunday paper to a start-up. James Harding former BBC news head runs the buying company called Tortoise which hasnt been making money itself. The board will meet tomorrow to make its choice

Questions pop up about the papers real worth — some media experts think its value should be near £30m based on its profit numbers. The deal with Tortoise includes just a small payment up-front but promises £25m in future money (which theyʼll put in during next 5 yrs)

Staff members dont like how Anna Bateson the Guardian Media Groups boss and Harding are friends — they went on fancy trips together including one on a super-yacht and another to ski in France. The company says its done proper checking and Bateson told everyone about their friendship

Even once added expenses are included the losses are miniscule set against the companys £1.3bn cash pile

said Paul Webster former Observer editor

Workers plan to walk out for 4 days soon; theyʼll stop if sale talks end. The European Federation of Journalists (with almost 300k members) wrote to say they back the workers. Meanwhile Katharine Viner the Guardians editor tries to calm everyone down by having office meetings

The company keeps saying shared stuff like ad sales HR and some writing would make the Observer loose money — but critics think theyre making things look worse than they are. Management says they need this deal to keep the 233-yr old paper going in todays changing news world

Thomas Archer

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