Guardian Media Group Explained

Guardian Media Group plc
Type:Public
Foundation: (Manchester Guardian)
(Guardian Media Group plc)
Founder:C. P. Scott
Location City:London
Location Country:United Kingdom
Area Served:England, Wales
Key People:Anna Bateson (CEO)
Charles Gurassa (Chair)
Industry:Media
Products:Newspapers, websites
Revenue: £264.4 million[1]
Revenue Year:2022-23
Operating Income: £-21.3 million
Income Year:2022-23
Owner:Scott Trust Limited
Divisions:Guardian News & Media
Top Right Group (formerly Emap)
GMG Property Services Group

Guardian Media Group plc (GMG) is a British-based mass media company owning various media operations including The Guardian and The Observer. The group is wholly owned by the Scott Trust Limited, which exists to secure the financial and editorial independence of The Guardian in perpetuity.

The Group's annual report (for the year ending 2 April 2023) indicated that the Scott Trust Endowment Fund was valued at £1.24 billion, while in 2021 it was valued at £1.14 billion.[2]

History

The company was founded as the Manchester Guardian Ltd. in 1907 when C.P. Scott bought The Manchester Guardian (founded in 1821)[3] from the estate of his cousin Edward Taylor.

It became the Manchester Guardian and Evening News Ltd when it bought out the Manchester Evening News in 1924, later becoming the Guardian and Manchester Evening News Ltd to reflect the change in the morning paper's title. It adopted its current name in 1993.

In 1991, it had a 20% stake in a consortium which included London Weekend Television, Scottish Television, The Walt Disney Company and Carlton Communications for a new ITV breakfast franchise called GMTV.

Guardian Monthly was a glossy magazine published by the Guardian Media Group for readers around the world.[4] Launched in November 2006,[5] it made selections from The Guardian and The Observers magazine supplements available to an international audience of English-speakers.[6] Issues contained interviews with cultural figures, features about world issues, and regular articles on travel, books, sport, health, fashion, food and photography. In July 2007, the Guardian Media Group announced the cancellation of the Guardian Monthly.[7] In a letter to subscribers, Will Ricketts, Guardian Monthly's publisher, explained the reasons for the cancellation of the monthly magazine:

In March 2007, GMG sold 49.9% of Trader Media Group to Apax Partners, in a deal that valued Trader Media Group at £1.35 billion. In December 2007, it was announced that GMG and Apax had made a successful bid to buy Emap's business-to-business arm for around £1 billion.[8]

In February 2010, the group sold its GMG Regional Media division (consisting of two companies MEN Media and S&B Media which operated 31 local and regional newspaper titles) to Trinity Mirror for £44.8 million. The sale eroded the connection between The Guardian and Manchester as the sale of the Manchester Evening News was included in the package.[9] The division's local television station for Greater Manchester, Channel M, and two newspapers in Woking were not included in the sale.

In June 2012, GMG sold its GMG Radio division, which operated Real Radio and Smooth Radio, to Global Radio.[10] [11]

In January 2014, GMG disposed of its remaining interest in Trader Media Group.[12]

Carolyn McCall was the chief executive of Guardian Media Group and chair of Guardian News and Media Limited from 2006 until June 2010, when she was appointed chief executive of EasyJet.[13] Andrew Miller, previously the chief financial officer of the Group, was chief executive from July 2010 to 2015. David Pemsel took his place in 2015.[14]

In October 2017, the Guardian Media Group reported a plan to launch a new £42 million venture capital fund.[15] That plan was consummated, making the Scott Trust a limited partner in GMG Ventures LP. According to the GMG 2018 annual report, "this £42m venture capital fund is designed to contribute financial returns and to support GMG's strategy by investing in early stage businesses focused on developing the next generation of media technology".[2]

In January 2020, it was announced that Annette Thomas would become the new chief executive in March 2020.[16] Thomas was formerly editor of Nature, MD of Nature Publishing Group and chief executive of Macmillan Science and Education. She replaced David Pemsel who left to take up a role at the Premier League.[17]

In May 2021, The Daily Telegraph reported Guardian editor Katharine Viner and Thomas were in conflict over finances and the direction the newspaper should take. The previous year The Guardian announced 180 job cuts. Thomas had earlier said at a media industry conference "we have quality content in spades ... the job at hand is to now go further by strengthening the growing elements of our business". Viner wanted renewed investment after better than feared financial results in 2020.[18] On 9 June 2021, it was announced that Thomas would leave the Guardian Media Group at the end of the month.[19] [20]

In August 2022, Anna Bateson was appointed as chief executive.[21] Subsequently Anders Jensen, chief executive of Viaplay, resigned as a GMG non-executive director because of the appointment process, in particular the level of influence exerted by Guardian editor Katharine Viner.[22]

Group structure

GMG's core business is Guardian News & Media Limited, publisher of theguardian.com, and The Guardian and The Observer newspapers. Guardian News & Media was formed as Guardian Newspapers Limited in 1967, adopting its present name in 2006.

The group has a portfolio of investments to help support its journalism.[23] They comprise:

Guardian Media Group exists to support the core purpose of its owner, Scott Trust Limited: to secure the financial and editorial independence of The Guardian in perpetuity,[24] but in the 2011/12 year the group lost £75.6 million,[25] and for the three years up to June 2012, the paper itself lost £100,000 a day - leading The Economists Intelligent Life magazine to question whether The Guardian could survive.[26] In late 2013, GMG sold their GMG Property Services Group to private equity firm Lloyds Development Capital (rebranded to Property Software Group), citing that it would allow them to focus on investing in the core part of their business - Guardian News and Media.[27] In 2014, The Guardian launched a membership scheme, aiming to avoid introducing a paywall and maintaining open access to the website. As of 2018, this approach was considered successful, having brought more than 1 million subscriptions or donations, with the paper hoping to break even by April 2019,[28] a goal they achieved in May 2019.[29]

External links

Notes and References

  1. https://uploads.guim.co.uk/2023/07/25/GMG_financial_statements_2023.pdf"Annual Report and Consolidated Financial Statements for the year ended 2 April 2023"
  2. Web site: 20 July 2022 . Guardian Media Group plc (GMG) publishes 2021/22 statutory financial results . 3 January 2023 . The Guardian . en . 2 January 2023 . https://web.archive.org/web/20230102225555/https://www.theguardian.com/gnm-press-office/2022/jul/20/guardian-media-group-plc-gmg-publishes-202122-statutory-financial-results . live .
  3. Web site: Guardian Media Group PLC . Gmgplc.co.uk . 25 October 2013 . 30 June 2015 . https://web.archive.org/web/20150630020858/http://www.gmgplc.co.uk/the-scott-trust/history/ . live .
  4. Web site: Guardian to launch monthly mag. 5 September 2006. Press Gazette. en-US. 27 September 2018. 28 September 2018. https://web.archive.org/web/20180928044011/https://www.pressgazette.co.uk/guardian-to-launch-monthly-mag/. live.
  5. News: Media choice: Guardian Monthly. 29 November 2006. Campaign. 27 September 2018. 28 September 2018. https://web.archive.org/web/20180928003424/https://www.campaignlive.co.uk/article/media-choice-guardian-monthly/607053. live.
  6. Web site: New Guardian Monthly mag to be launched. Armstrong. Murray. 5 October 2006. The Guardian. en. 27 September 2018. 28 September 2018. https://web.archive.org/web/20180928044319/https://www.theguardian.com/commentisfree/2006/oct/05/newguardianmonthlymagtobe. live.
  7. News: Guardian Monthly ceases publication. 30 July 2007. Press Gazette. 27 September 2018. Gazette. Press. 28 September 2018. https://web.archive.org/web/20180928043931/https://www.pressgazette.co.uk/guardian-monthly-ceases-publication/. live.
  8. Web site: Emap confirms B2B sale to GMG and Apax. Mark Sweney. the Guardian. 21 December 2007. 11 December 2016. 21 June 2016. https://web.archive.org/web/20160621011534/http://www.theguardian.com/media/2007/dec/21/emap.guardianmediagroup. live.
  9. Web site: Manchester Evening News sold by Guardian Media Group . . https://archive.today/20120909234851/http://www.manchestereveningnews.co.uk/news/business/s/1192028_manchester_evening_news_sold_by_guardian_media_group_ . dead . 9 September 2012 . 9 February 2010 . 9 February 2010 .
  10. News: Global Radio acquires GMG Radio. The Guardian. 25 June 2012. 16 February 2024. 16 February 2024. https://web.archive.org/web/20240216200929/https://www.theguardian.com/gnm-press-office/global-radio-acquires-gmg-radio. live.
  11. News: Ofcom and OFT to investigate £70m GMG Radio sale. Press Gazette. 3 August 2012. 16 February 2024. 16 February 2024. https://web.archive.org/web/20240216200930/https://pressgazette.co.uk/publishers/nationals/ofcom-and-oft-to-investigate-70m-gmg-radio-sale/. live.
  12. News: Guardian Media Group to divest holding in Trader Media . The Guardian . gmgplc.co.uk . 21 January 2014 . 25 January 2014 . 24 January 2014 . https://web.archive.org/web/20140124174719/http://www.gmgplc.co.uk/uncategorized/guardian-media-group-to-divest-holding-in-trader-media-3/ . live .
  13. News: Guardian group chief executive Carolyn McCall to join easyJet . Caroline . Davies . The Guardian . 23 March 2010 . 12 December 2015 . 22 December 2015 . https://web.archive.org/web/20151222091109/http://www.theguardian.com/media/2010/mar/23/carolyn-mccall-leaves-guardian-easyjet . live .
  14. News: Guardian Media Group appoints David Pemsel as chief executive . Mark . Sweney . The Guardian . 18 June 2015 . 12 December 2015 . 15 December 2015 . https://web.archive.org/web/20151215115817/http://www.theguardian.com/media/2015/jun/18/guardian-media-group-appoints-david-pemsel-as-chief-executive . live .
  15. Web site: The Guardian turns venture capitalist in hunt for new income. https://ghostarchive.org/archive/20220112/https://www.telegraph.co.uk/business/2017/10/18/guardian-turns-venture-capitalist-hunt-new-income/ . 12 January 2022. subscription . live. 18 October 2017. The Telegraph.
  16. Web site: Guardian Media Group appoints new chief executive. Waterson. Jim. 14 January 2020. The Guardian. 15 January 2020. 15 January 2020. https://web.archive.org/web/20200115121218/https://www.theguardian.com/media/2020/jan/14/guardian-media-group-appoints-new-chief-executive-annette-thomas. live.
  17. News: Guardian group names scientist Annette Thomas as new chief executive . Mayhew . Freddy . Press Gazette . 14 January 2020 . 15 January 2020 . 14 January 2020 . https://web.archive.org/web/20200114235530/https://www.pressgazette.co.uk/guardian-media-group-annette-thomas-chief-executive/ . live .
  18. News: Guardian leaders clash over 'who calls the shots' . https://ghostarchive.org/archive/20220112/https://www.telegraph.co.uk/business/2021/05/17/guardian-leaders-clash-calls-shots/ . 12 January 2022. live . Williams . Christopher . The Daily Telegraph . subscription . 17 May 2021 . 18 May 2021.
  19. News: Chief executive Annette Thomas to leave Guardian Media Group . The Guardian . 9 June 2021 . 9 June 2021 . 9 June 2021 . https://web.archive.org/web/20210609143737/https://www.theguardian.com/media/2021/jun/09/guardian-media-group-announces-departure-of-chief-executive-annette-thomas . live .
  20. News: Guardian boss steps down in wake of power struggle . https://ghostarchive.org/archive/20220112/https://www.telegraph.co.uk/business/2021/06/09/guardian-boss-steps-wake-power-struggle/ . 12 January 2022. live . Field . Matthew . The Daily Telegraph . subscription . 9 June 2021 . 9 June 2021.
  21. News: Guardian Media Group appoints Anna Bateson as chief executive . Waterson . Jim . The Guardian . 25 August 2022 . 22 December 2022 . 22 December 2022 . https://web.archive.org/web/20221222140553/https://www.theguardian.com/media/2022/aug/25/guardian-media-group-appoints-anna-bateson-as-chief-executive . live .
  22. News: Guardian shuts offices after ransomware attack . Warrington . James . The Daily Telegraph . limited . 22 December 2022 . 22 December 2022 . 21 December 2022 . https://web.archive.org/web/20221221175839/https://www.telegraph.co.uk/business/2022/12/21/guardian-staff-shut-office-newspaper-suffers-glitch/ . live .
  23. Web site: Our investments | Guardian Media Group PLC . Gmgplc.co.uk . 2013-10-25 . 2013-10-23 . https://web.archive.org/web/20131023074916/http://www.gmgplc.co.uk/gmg/our-investments/ . live .
  24. Web site: The Scott Trust - The Guardian. the Guardian. 2012-06-26. 2015-07-18. https://web.archive.org/web/20150718144313/http://www.gmgplc.co.uk/the-scott-trust/. live.
  25. News: Guardian Media Group plc (GMG) announces full-year results for 2011/2012. the Guardian. 10 August 2012. 28 June 2013. 14 May 2015. https://web.archive.org/web/20150514223252/http://www.gmgplc.co.uk/press-releases/2012/guardian-media-group-plc-gmg-announces-full-year-results-for-201112/. live.
  26. Web site: Can The Guardian Survive? . More Intelligent Life . 2013-10-25 . 2014-08-19 . https://web.archive.org/web/20140819142430/http://moreintelligentlife.com/content/ideas/tim-de-lisle/can-guardian-survive . dead .
  27. Web site: Private equity backing for £17.8m buyout of GMG group . 19 December 2013 . 2021-07-21 . 2021-07-22 . https://web.archive.org/web/20210722210413/https://www.yorkshirepost.co.uk/business/private-equity-backing-ps178m-buyout-gmg-group-1851009 . live .
  28. News: The Guardian's reader funding model is working. It's inspiring . Viner . Katharine . The Guardian . 12 November 2018 . 12 November 2018 . 12 November 2018 . https://web.archive.org/web/20181112100156/https://www.theguardian.com/membership/2018/nov/12/katharine-viner-guardian-million-reader-funding . live .
  29. News: The Guardian breaks even against the odds: we couldn't have done this without you . Viner . Katharine . The Guardian . 1 May 2019 . 1 May 2019 . 1 May 2019 . https://web.archive.org/web/20190501094011/https://www.theguardian.com/global/2019/may/01/the-guardian-break-even-katharine-viner . live .

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