In a deal that puts an enterprise value of €4.2 billion ($ 4.5 billion ), Formula 1 owner Liberty Media, led by chairman John Malone and CEO Greg Maffei, has struck a deal to buy a large majority stake in the company that is the home of the motorcycle racing circuit MotoGP, according to The Hollywood Reporter.
The package for Madrid- based Dorna Sports, which is the corporate rights owner for MotoGP, comes after the likes of UFC and WWE owner TKO Group, run by Ari Emanuel, and Qatar Sports Investments had moreover looked at a probable takeover, according to reports.
Liberty said the transaction also amounts to an equity value of €3.5 billion ($ 3.8 billion ) for the company,” with the existing debt balance at MotoGP expected to remain in place after close”. The company expects to pay for the company with about 65 percent in cash and 21 percentage in Liberty Formula One common property, according to Liberty, which will feature MotoGP to its Formula One Group monitoring stock.
The acquisition is anticipated to be completed by the year-end of 2024 and is content to” the certificate of certifications and approvals by rivals and foreign investment law specialists in various states,” according to Liberty.
Dorna’s current owners include financial firms Bridgepoint Capital, based in the U. K., and the Canada Pension Plan ( CPP ) Investments, headquartered in Canada. Additionally, Dorna, under the direction of long-standing CEO Carmelo Ezpeleta, promotes championships like the MotoE and Superbike World Championship.
Formula 1 has looked to increase its rushing schedule and increase its circuit to more media outlets, including an increased social media presence and the Netflix reality series Drive to Live, produced by Box to Box Films, under the ownership of Liberty Media. Additionally, it has made efforts to expand its advertising partnerships, including one with Paramount+, a streaming services.
The deal is expected to encounter regulatory hurdles, the Financial Times just reported. After all, CVC Capital Partners, a private equity firm, attempted to possess both MotoGP and Formula One but was forced to sell them in 2006 to swindle the company’s approval to purchase both.
With the purchase of MotoGP, we are thrilled to increase our collection of market leader live activities and entertainment assets, said Greg Maffei, president and CEO of Liberty Media. ” MotoGP is a global group with a devoted, devoted fan base, captivating race, and a highly cash-flow generating financial status. He added:” The company has significant back, and we intend to expand the game for MotoGP enthusiasts, teams, business partners and our shareholders”.
Ezpeleta continued,” We are excited for what this milestone brings to Dorna, the MotoGP paddock, and racing fans. This is the ideal next step in the evolution of MotoGP.”
O’Melveny & Myers serves as legal counsel while Goldman Sachs serves as Liberty Media’s financial advisor and provides debt financing for the transaction. Moelis &, Co. is acting as financial advisor to Dorna, with Latham &, Watkins acting as legal counsel.