The Observer newspaper, which could face being shut down as part of a strategic review for parent company Guardian Media Group, is beginning to attract unsolicited bids from third parties.
Investment firm Capital Ideas has launched a bid to buy the Sunday title for a nominal sum, and potentially transform the brand into a weekly news magazine and website. Capital already owns the trade titles, Investing for Growth and Compliance Monthly.
Capital has sent out an initial letter of intent, with details of the proposal. If a deal goes ahead, it plans to reduce the newspaper's staff numbers.
This is the first of what is likely to be a string of bid approaches from third party companies for the title, which was founded in 1791.
Guardian Media Group is due to release the results of a strategic review in September, and options for the Observer are expected to include its closure or its transformation into a weekly news publication.
The Observer is published, along with the Guardian and guardian.co.uk, by Guardian News & Media, which is owned by Guardian Media Group. Other cost cutting measures being taken by the company, which reported an operating loss of £36.8m in the year ending 29 March, include seeking 50 voluntary redundancies from its editorial department, cutting £10m from its editorial operations and an equal amount from its commercial business.
