- Liberty set to acquire MotoGP for €4.2bn
- Acquisition expected to close by end of the year
Liberty Media’s MotoGP takeover has been filed with the European Commission for regulatory approval.
The major stumbling block to this acquisition being finalised is the same problem that CVC faced in 2006, when EU competition regulators decided the private equity firm had to sell one of MotoGP or Formula One.
The US media company is set to acquire approximately 86 per cent of Dorna, the commercial rights holder of the global motorcycling series, for €4.2 billion (US$4.5 billion).
Dorna will remain an independently run company attributed to Liberty Media’s Formula One Group tracking stock, and long-time chief executive Carmelo Ezpeleta will remain in his position.
Dorna, which also holds the exclusive rights to the World Superbike Championship, the all-electric MotoE series, and the Moto2 and Moto3 feeder series, will retain around 14 per cent of equity in the business.
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The equity value of the deal is €3.5 billion (US$3.8 billion), which takes into account the existing debt that will remain in place after the deal closes. Dorna currently has a €975 million (US$1.05 billion) gross loan granted by BNP Paribas, which expires in 2029.
In August, Liberty sold shares worth just over US$825 million, with the proceeds predominantly for its acquisition of Dorna, but also to repay outstanding debts.
Interestingly, Liberty chief executive Greg Maffei will be stepping down at the end of the year just as this deal is expected to be finalised. In his place, chairman John Malone will act as interim chief executive.
“I used to say the door is always open,” Malone told CNBC on whether he’d entertain offers to sell Formula One. “But I believe Formula 1 has a very bright future as is. And the management team has done a brilliant job. It has a very powerful brand now that can be expanded on.”
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