The Observer has secured £10 million to support its plan for a financially sustainable Sunday newspaper, marking a significant boost to its turnaround effort. The funding, which lacks backing from the Scott Trust, was announced at a staff meeting in London and will help the 234-year-old title expand its digital subscriber base. Since its 2023 sale to Tortoise Media, founded by former BBC News chief James Harding, the paper’s print circulation has slipped from 114,000 to 90,000, while Harding aims for 173,000 paying subscribers by 2029. New investors include South African businessman Gary Lubner, whose philanthropic fund This Day will increase its stake, and Standard Investments. The Scott Trust’s 9% share will be diluted, though it retains a board seat. Lord Mark Malloch‑Brown has been appointed Observer chair, succeeding Tortoise co‑founder Matthew Barzun, who stays as vice chair. The Guardian Media Group continues to provide print and distribution services. In a statement, Harding called the investment “good news” for the paper’s business revival and liberal voice.

The Observer’s journey began as a sister title to the Guardian under the Scott Trust’s control. After the Guardian sold it to Tortoise Media for £25 million, the paper launched its own website, app, podcasts, and digital video platform. The new equity raise signals a shift toward independent financial sustainability, with the Scott Trust’s stake being diluted but its board presence maintained. The appointment of Lord Malloch‑Brown, a former UN deputy secretary‑general and Open Society Foundations president, underscores the paper’s commitment to internationalist journalism rooted in its historic legacy.

Key figures in the funding include Gary Lubner, a Labour Party donor and former Autoglass executive, who will become a substantial minority investor. The round also features Standard Investments, reinforcing confidence from established financial partners. While the Scott Trust’s stake is reduced, its continued board seat suggests an ongoing strategic relationship. The Guardian declined to comment, leaving the exact nature of its involvement ambiguous. Overall, the £10 million infusion positions the Observer for growth, aiming to revitalize both its print and digital offerings while preserving its editorial identity.