Insurance Tycoon Clive Cowdery Takes Stake in The Observer
In a significant development, Sir Clive Cowdery, the billionaire founder of the insurance group Resolution Life, has taken a stake in The Observer, the Sunday newspaper, as it prepares to relaunch under new ownership. According to a report by The Times, Cowdery has invested an undisclosed sum in The Observer and taken a seat on the newspaper’s board after its takeover by Tortoise Media.
The Observer is gearing up for its first Sunday edition under Tortoise, the media start-up founded by James Harding, a former editor of The Times. As reported by The Times, Cowdery’s investment comes as The Observer is set to move behind a paywall under its new owners, with the group due to begin a marketing campaign during the London marathon this weekend.
The takeover of The Observer by Tortoise Media has been a contentious issue, with The Guardian Media Group’s journalists going on strike after it revealed plans to sell The Observer to Tortoise despite Harding’s pledge to invest £25 million into the Sunday paper’s operations. As The Times reported, journalists expressed concerns about the strength of Tortoise’s finances compared with the Scott Trust, the £1.3 billion fund that owns GMG but later voted for the sale.
In a significant development, the Scott Trust has taken a 9 per cent stake in Tortoise as part of the transaction, and Harding is no longer a controlling shareholder in the group, according to a filing with Companies House. As quoted in The Times, Harding told the Financial Times that the “paper will change, but change gradually”, and would not be a “breaking news service”.
Cowdery, who is chief executive of Resolution Life, which was sold to Japan’s Nippon Life for £8.3 billion last year, has a long history of investing in media and think tanks. He set up the Resolution Foundation, a social and economics think tank, in 2005 and also owns Prospect, a magazine edited by Alan Rusbridger, a former editor of The Guardian. As The Times reported, Rusbridger signed a letter to the Scott Trust protesting against the sale of The Observer in November 2024.
Matthew Barzun, chairman of Tortoise, has welcomed Cowdery’s investment, saying: “We are delighted Clive is joining our Board. He brings an unrivalled combination of business intelligence and investor focus, intellectual curiosity and progressive principle, not to mention ambition and enthusiasm to the renewal of the Observer.” As quoted in The Times, Barzun added that Cowdery “will make a profound contribution to the success of the company and champion the independent, enlightening journalism we believe in”.
The investment by Cowdery is seen as a significant boost to The Observer as it relaunches under new ownership. With its move behind a paywall and a renewed focus on in-depth journalism, The Observer is set to undergo significant changes under Tortoise Media. As The Times reported, the newspaper’s future plans are set to be closely watched by media observers and investors alike.
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