United States: Liberty Media, the owner of Formula One (F1), has agreed to purchase MotoGP for approximately €4.2 billion ($4.5 billion) from Dorna, the Spain-based owner. According to a statement released by MotoGP, Liberty Media will acquire an ‘approximately 86 percent’ stake in the company.
The investment in Formula One and MotoGP by Liberty is anticipated to be finalised by the end of 2024, provided that all the necessary clearances and approvals from competition and foreign acquisition law authorities in different locations are obtained.
It’s worth noting that Liberty won’t be the first firm to possess both of these motorsport franchises. In response to EU competition regulators’ objections, CVC Capital Partners sold MotoGP to purchase F1 after owning both series.
A statement released by MotoGP noted that, “Liberty Media Corporation has announced an agreement to acquire MotoGP. MotoGP is the pinnacle of two wheels. 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 EUR4.2 billion and an equity value of EUR3.5 billion, with MotoGP’s existing debt balance expected to remain in place after close.”
Greg Maffei, Liberty Media president and CEO, stated that, “We are thrilled to expand our portfolio of leading live sports and entertainment assets with the acquisition of MotoGP. It 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.”
Carmelo Ezpeleta, who was the CEO since 1994, will continue in his role, and the company will maintain its headquarters in Madrid. “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. 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,” Ezpeleta added.
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