Formula One owners Liberty Media buy MotoGP for $4.5 billion

AFP | Paris                                          

The Daily Tribune – www.newsofbahrain.com

Formula One owners Liberty Media have agreed to buy MotoGP yesterday in a deal valued at around $4.5 billion, the American company said.

MotoGP said in a statement that Liberty Media would acquire “approximately 86 percent” stake from Spain-based owners Dorna in a deal valued at 4.2 billion euros ($4.5 billion).

The acquisition is expected to be completed by the end of 2024 subject to clearances and approvals by competition and foreign investment law authorities in various jurisdictions.

Liberty will not be the first company to own both Formula One and MotoGP.

Private equity firm CVC Capital Partners had owned both F1 and MotoGP but was forced to sell the motorcycle series to buy F1 after EU competition regulators raised objections.

“Liberty Media Corporation has announced an agreement to acquire MotoGP.

MotoGP is the pinnacle of two wheels,” read a statement issued by MotoGP.

“Liberty Media will acquire approximately 86 percent of Dorna, with Dorna management retaining approximately 14 percent of their equity in the business.

“The transaction reflects an enterprise value for Dorna/ MotoGP of €4.2 billion and an equity value of €3.5 billion, with MotoGP’s existing debt balance expected to remain in place after close.”

Liberty were not the only company interested in acquiring Dorna.

According to a report last week in the Financial Times Qatar Sports Investments (QSI), owners of French champions Paris Saint-Germain, and TKO Group Holdings, which comprises mixed martial arts organisation UFC and World Wrestling Entertainment (WWE), had also held talks with Dorna. However, it was Liberty who emerged the winners.

“We are thrilled to expand our portfolio of leading live sports and entertainment assets with the acquisition of MotoGP,” said Greg Maffei, Liberty Media President and CEO.