The Observer, one of Uganda’s most authoritative and analytical newspapers, is looking for a buyer, Bbeg Media has learned.
Pius Muteekani Katunzi, the managing director of The Observer, told Bbeg Media that they had talked to some prospective investors about buying the paper.
“We have been in talks with a couple of people. There are some Ugandans, there are some Kenyans and others but nobody has been zeroed on because we have to sort out some issues,” Katunzi said.
Katunzi said they would prefer someone who maintains the paper’s editorial character and independence but admitted that this might be difficult.
“We would love the paper to continue as it is, but the truth is we are looking for money,” Katunzi said.
Katunzi said one of the reasons why they have not closed the sale pertains to the modalities of the structure of the ownership once the paper is sold.
While some prospective buyers may want to own the paper outright, we have been told that the majority of the shareholders want to retain a stake in the paper as it happened in the early 2000s when Daily Monitor shareholders sold their majority stake to Kenya’s Nation Media Group but retained a small stake.
The Observer, sources said, could be sold for at least Shs 1 billion, most of which will go towards clearing its liabilities. Much of this money, sources said, is a reflection of its “brand power” not necessarily its assets. The rest will be shared amongst shareholders.
One of the people interested in buying the paper, we have established, is Steven Magomu, a former journalist turned businessman.
Our sources told us that Magomu, who is a renowned NRM mobiliser in Bugisu, had tentatively agreed terms with The Observer but Katunzi rebuffed this.
Katunzi said Magomu was just one of the prospective buyers they had talked to but had not finalized anything.
Our attempts to talk to Magomu were futile as he refused to pick our calls. But people close to the businessman confirmed that the talks were progressing well and many things had been agreed upon.
Magomu was a correspondent for The Observer based in Mbale in 2011. He is now in the import and manufacturing business.
Over the last five years, The Observer like many media organisations, has struggled to stay afloat due to several factors.
With the economy in poor shape, advertisements have dwindled and copy sales have dried up. The paper has also suffered as a result of the growth in popularity of social media platforms like X, Instagram, and Tiktok where many young readers now get their news.
The Observer was started in March 2004 by a group of journalists who had left Daily Monitor led by Kevin Ogen Aliro, who passed away in November 2005.
Other founders were: James Tumusiime (who left in 2020); Katunzi; Ibrahim Ssemujju Nganda (who left for politics); Hassan Badru Zziwa; Carolyne Nakazibwe, Elizabeth Kameo (left in 2006); Linda Nabusaayi left in 2007); Fideri Kirungi; Sarah Namulondo (deceased) and Abbey Mukiibi.
In its heyday, The Observer, known for its deep analysis of current affairs, used to sell between 18,000 to 20,000 copies a week. Today, according to industry sources, the paper sells less than 4,000 copies every week.
