Observer ire turns on Kath Viner

The proposed takeover of The Observer by loss-making Tortoise Media – the slow news start-up launched by former Times and BBC editorial boss James Harding – is turning into the media biz shitshow to end all shitshows.

The past fortnight has seen recriminations inside the Guardian hit new levels: Journalists voting overwhelmingly for walkouts; accusations of a deal carve-up between CEO Anna Bateson and Harding, who are old friends; the resignation of restaurant critic Jay Rayner; Observer journalists being sent letters by management warning them off public dissent. So much for Open Journalism™.

Until recently, ire amongst Observer journalists has focussed mainly on Bateson, accused of hastiness in promoting the Tortoise proposal without sufficient due diligence and not testing the appetite in the open market for what is, despite declining circulation, still one of the world’s great mastheads.

Now, however, attention is turning to editor-in-chief Kath Viner… and not in a good way.

To understand the pivotal role Viner holds in the process, a knowledge of the governance of the Guardian as a business is essential. Here’s a quick primer:

Day to day, the business is governed by the 11-strong Guardian Media Group (GMG) board – including CEO Bateson and chaired by Charles Gurassa, a long time UK business executive and former boss of Thomson travel agents.

Overlooking, and financially underwriting, the entire operation is the Scott Trust – the Guardian’s sole shareholder, whose remit is to protect the editorial and financial independence of the title. It is chaired by private banker Ole Jacob Sunde.

The only person sitting on both boards is Viner, editor-in-chief of Guardian Media Group since 2015, having won an ample majority in the ballot of editorial staff on the Guardian and Observer to decide the successor to Alan Rusbridger. Safe to say, a similar ballot held today would deliver a less convincing result.

“There was a sense up until quite recently that Kath would be the person who ultimately would do the right thing by the Observer and stop this from going through,” said one insider, firmly against the sale. “Now that’s all switched.

“People talk about the governance of the Guardian but the truth is there is no governance. The GMG board are never going to go against Kath and the Scott Trust literally sees its role as supporting her to the hilt.

“She’s driving this whole thing now. She owns the deal. The loss in confidence in her is final. At union meetings we’ve discussed priorities. First is to stop the deal. Second is to reform the governance of the business. Third is regime change.”

Rats spoke to a number of Guardian/Observer insiders for this article. Most – though not all – were scathing about Viner’s role. Even the one broadly supportive journalist criticised her handling of the affair.

“A lot of us don’t want to strike, but there’s a strong strain of Corbynistas in the union chapel and … well, solidarity and all that. Fair enough. But it doesn’t get around the big question over the Observer’s future.

“It’s got no digital plan and it’s dying in print. Someone had to bite the bullet. Alan [Rusbridger] had a go at dealing with it but eventually got talked out of it. But Kath is biting the bullet.

“People who accuse her of being cowardly or devious misunderstand her. She’s being hard-headed and taking tough decisions and of course not everyone likes that. She inherited a business in bad financial shape and she’s dealing with it.

“One thing I would say, if she wants support from the newsroom, she needs to be much more visible. Alan used to be very hands-off, but even he’d stop by the news desk at the end of the evening for a chat. Kath is invisible.”

Another journalist was less charitable. Describing dismay about a GMG Board vote in support of the Tortoise proposal passing last week, based on due diligence compiled by the business and ignoring parallel due diligence being prepared by the union, he said:

“You get the impression that the Guardian is some sort of utopian organisation funded by its readers and always striving to do the morally right thing. I genuinely used to think that up to last week.

“Now I’ve seen how dark and sneaky the people at the top are, there have been moments in the past couple of weeks I’ve literally felt sick at the sense of betrayal.”

Rats has seen an internal email, sent by Anna Bateson to staff, confirming the GMG board had considered the company’s due diligence and given “its support to management to continue to pursue the proposal from Tortoise.”

Rats asked the Guardian to comment. A spokesperson said: “We recognise the strength of feeling about the proposed sale of the Observer. Our priority is to serve our readers, protect jobs and support our staff so that the Guardian and the Observer can continue to promote liberal journalism and thrive in a challenging media environment.

“We want to preserve The Observer’s 233 year legacy – this potential deal is about protecting the paper’s future, and ensuring its world-class journalism can flourish.”