F1 Owner Liberty Media Acquires MotoGP For Over $4.5 Billion
After acquisition, MotoGP will be attributed to Liberty Media’s Formula One Group tracking stock.
Liberty Media Corp., the owner of Formula 1, announced the acquisition of the MotoGP World Championship for over $4.5 billion.
The American mass media company agreed to acquire Dorna Sports, S.L,. the exclusive commercial rights holder to the MotoGP World Championship, from Bridgepoint and Canada Pension Plan Investment Board, it said in a statement on Monday.
After acquisition, MotoGP will be attributed to Liberty Media’s Formula One Group tracking stock. Currently, Liberty Media has three divisions reflecting its ownership stakes in Formula One, Sirius XM, and Live Nation Entertainment.
“We are thrilled to expand our portfolio of leading live sports and entertainment assets with the acquisition of MotoGP,” said Greg Maffei, president and CEO of Liberty Media.
“MotoGP is a global league with a loyal, enthusiastic fan base, captivating racing and a highly cash flow generative financial profile. Carmelo and his management team have built a great sporting spectacle that we can expand to a wider global audience. The business has significant upside, and we intend to grow the sport for MotoGP fans, teams, commercial partners and our shareholders.”
Acquisition Details
The media giant will acquire 86% equity of MotoGP, with MotoGP management retaining the remaining 14% in the business. This will be done for an enterprise value of €4.2 billion ($4.5 billion) and an equity value of €3.5 billion.
The equity consideration will be completed with 65% cash, 21% in shares of Series C Liberty Formula One common stock and 14% of retained MotoGP management equity.
The cash consideration will be funded with a mix of cash and debt, subject to market conditions, with Goldman Sachs & Co. LLC acting as financial advisor. The acquisition is expected to be completed by year-end.
It was in 2017 that Liberty Media completed the acquisition of F1 from its parent company Delta Topco, for a value of $8 billion.
MotoGP is the highest form of two-wheeler street/circuit racing, while Formula One is the same for four-wheelers.