Formula One owners Liberty Media have agreed to buy MotoGP on Monday 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.
“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.”
Long serving CEO Carmelo Ezpeleta will remain in the post he
has occupied since 1994 with the business headquarters remaining in Madrid.
Ezpeleta said he was looking forward to the 21-race global
championship evolving even further.
“This is the perfect next step in the evolution of MotoGP,
and we are excited for what this milestone brings to Dorna, the MotoGP paddock
and racing fans,” said Ezpeleta.
“We are proud of the global sport we’ve grown, and this
transaction is a testament to the value of the sport today and its growth
potential.
“Liberty has an incredible track record in developing sports
assets and we could not wish for a better partner to expand MotoGP’s fanbase
around the world.”
Since Liberty paid CVC eight billion dollars for F1 in 2017
the sport has enjoyed a spike in popularity and Maffei suggested last year that
while F1 was not for sale it was worth now “a hell of a lot more” than $20
billion.
AFP
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