Observer to continue - publisher

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The Observer newspaper will continue to be published, its owner says, ending speculation that the world's oldest Sunday paper might close down.

However, Guardian Media Group (GMG) said there would be further integration of its staff at the Observer and sister paper the Guardian.

A strategic review at the group had considered closing the paper or turning it into a weekly magazine.

Many celebrities and media figures backed a campaign to save the Observer.

Blur singer Damon Albarn, rapper Dizzee Rascal and writers Martin Amis and Salman Rushdie were among those who called for the paper, founded in 1791, to continue.

There isn't a media group in the world that isn't reviewing its publishing operations and the nature of its journalism Alan Rusbridger GNM editor-in-chief

A GMG statement read: "One element of the wider process was a review of weekend publishing, which considered a range of different products and editorial structures across Saturday and Sunday.

"As a result of this review, GNM (Guardian News and Media) will develop its current weekend offering and introduce a greater degree of integration between the editorial teams of the Guardian and Observer."

Research among readers showed support for a new-look Observer, the statement said, and to new ideas for the Saturday Guardian.

Alan Rusbridger, editor-in-chief of GNM, said: "Given the present state of recession and digital transition, there isn't a media group in the world that isn't reviewing its publishing operations and the nature of its journalism.