The Guardian halves losses and hits record £275m revenue

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1. https://www.cityam.com/the-guardian-slashes-losses-amid-record-sales-following-the-observer-deal/ – Please view link – unable to able to access data
2. https://www.ft.com/content/aa9cd9d3-6c8e-4149-b355-1c13600dde17 – RedBird Capital Partners, led by Gerry Cardinale, has agreed to acquire the UK’s right-leaning Telegraph Media Group for £500 million. This deal ends Lloyds Banking Group’s seizure of the newspaper from the Barclay family in 2023. RedBird aims to expand the Telegraph’s influence globally, especially within the US conservative media space. Abu Dhabi’s IMI, initially central to the acquisition, will instead hold a passive minority stake of 15%, the maximum allowed under a revised UK law designed to mitigate foreign state influence. The purchase structure, partially funded with debt, allows other UK investors like DMGT to acquire smaller stakes. The transaction seeks to repair strained UK-UAE relations, exacerbated by prior media control controversies. The deal still awaits regulatory approval but represents a strategic pivot for both RedBird and the British government. Cardinale has pledged editorial independence and plans to grow the Telegraph’s digital subscription base, signaling a long-term intent to develop it into a global media brand.
3. https://www.ft.com/content/40e1465d-7888-439f-a8c4-a13cc3b59654 – RedBird Capital Partners, led by Gerry Cardinale, has agreed to acquire the Telegraph Media Group in a £500 million deal, concluding a prolonged sale process. The acquisition follows a failed previous bid involving RedBird IMI, a joint venture largely backed by Abu Dhabi, which was blocked by the UK government due to concerns about foreign state ownership of national newspapers. New legislation now limits foreign state investment in British media to 15%, enabling Abu Dhabi’s IMI to hold a minority stake. RedBird will become the sole controlling owner and is engaging UK-based investors, such as DMGT, to form a consortium. The transaction, involving about £100 million in debt finance, aims to enhance the Telegraph’s digital operations, expand its AI tools usage, and grow its international presence, particularly in the U.S. The acquisition awaits approval under media competition and plurality rules and may face political scrutiny. RedBird, a prominent investor in UK media and sports, also owns stakes in All3Media and Liverpool FC, and may soon control Channel 5 through a related merger.
4. https://www.ft.com/content/a167b681-40ac-4b63-955a-8bcc821ad3cd – British insurance tycoon Sir Clive Cowdery has taken a minority stake in Tortoise Media, the new owner of The Observer newspaper. Tortoise acquired the 234-year-old Sunday paper from Guardian Media Group (GMG) in December 2024, with the official transfer completed in April 2025. The Observer’s first edition under Tortoise will be published this weekend, marking Tortoise founder James Harding’s return to print journalism. Harding, a former editor of The Times and BBC News director, aims to gradually modernize the paper while retaining its familiar identity. Tortoise plans to invest £25 million into The Observer, along with funding from investors like Gary Lubner and Standard Investments. Cowdery sees the acquisition as part of his broader support for diverse public discourse. The Observer will now feature a separate website, newsletters, podcasts, and a forthcoming TV service, aiming to go digital-first while maintaining strong print content. Additionally, Tortoise intends to preserve editorial independence and improve working conditions for staff, despite initial concerns from journalists about Tortoise’s financial sustainability and editorial direction. Future plans include a subscription paywall and expanded editorial content, positioning The Observer similarly to U.S. magazine The Atlantic.
5. https://www.telegraph.co.uk/business/2024/09/21/revolting-guardian-journalists-wreck-plan-observer/ – Members of the National Union of Journalists (NUJ) at The Guardian have expressed strong opposition to the proposed sale of The Observer to Tortoise Media. The union passed a vote of no confidence in the Scott Trust, accusing it of betraying its principles and prior commitments. The concerns centre on the shift from the stable ownership of an endowment set up almost a century ago to the hands of a start-up founded by James Harding, a former BBC News director. The sale underscores wider financial challenges at The Guardian, which reported a £37 million loss in the previous year. Despite these challenges, The Guardian has been expanding its international presence, particularly in the US and Australia, and has been investing in its digital operations. The company employed 1,014 journalists in 2023, up from 860 in 2019, with staff costs increasing by more than £30 million over the same period. In an attempt to trim costs, The Guardian initiated a voluntary redundancy round in May, resulting in the departure of several high-profile journalists. Insiders accuse management of relying too much on the Scott Trust endowment to cover losses, raising questions about the sustainability of this approach.
6. https://pressgazette.co.uk/media_business/guardian-ends-four-year-run-of-revenue-growth-and-reports-36-5m-deficit/ – Guardian Media Group is considering a sale of The Observer to Tortoise Media after reporting rising losses for the last financial year. The company reported a fall in revenue for the year to 31 March 2024 after a four-year growth streak, although digital reader revenues were up by 8%. The publisher said the 2.5% year-on-year drop to revenue of £257.8m reflected a market slowdown in advertising and sustained structural pressures on print. Advertising saw the biggest drop, down 13% since 2023 and 16% compared to 2022. Print reader revenue was down 3% in the past year. Cash outflow from the business stood at £36.5m, up from £21m a year earlier. However, investment performance meant the Guardian’s endowment fund actually grew slightly to £1.275bn (up from £1.240bn a year earlier). The Guardian is owned by the Scott Trust whose chair Ole Jacob Sunde said: “We must be honest about areas of the business that are not part of our future growth and adapt.”
7. https://inews.co.uk/news/guardian-report-millions-losses-staff-job-cuts-3243586 – The Guardian is facing significant financial challenges, with reports indicating potential losses in the millions and staff bracing for job cuts. Membership revenue from readers was £3 million behind budget, while other revenue types were £2 million behind budget. As a whole, the group reported £192 million in revenue in the nine months, a drop of £10 million, or five per cent, when compared to the same period in 2022. Staffing now accounts for an estimated 55 per cent of total GMG costs, compared with 49 per cent in 2020. The Scott Trust, which owns The Guardian, considers the current financial situation “beyond acceptable or sustainable”. A spokesperson for The Guardian stated that they have not yet published their financial results and do not recognise some of the claims sourced from the blog mentioned in this article. The Guardian has had a record year for reader revenue and its supporter base is growing. They are making key investments over the next few years as they concentrate on their strategy to be more global, more digital, and more reader-funded. Like all news titles, they are looking at their business costs so they can adapt to changes in the industry.