Formula 1 owners to complete £3.6bn deal for MotoGP
Formula 1 owners Liberty Media will complete a £3.6bn deal to buy MotoGP by the close of play on Thursday.
The agreement will see Liberty Media purchase 84 per cent of MotoGP’s commercial rights holder Dorna – in cash – after it last week got approval from the European Commission.
“We believe the sport and brand have significant growth potential, which we will look to realise through deepening the connection with the core fan base and expanding to a wider global audience,” Derek Chang, Liberty Media president and CEO, said.
Formula One Group’s current market cap is just north of $25bn, with MotoGP set to boost that when it is incorporated into the same arm of Liberty Media.
It is a deal that will turn a motorsport juggernaut into a global behemoth.
“Following the acquisition,” Liberty Media said, “Formula One Group’s tracking stock will be comprised of its subsidiaries Formula 1, MotoGP and Quint, as well as certain minority investments.”
Professor Rob Wilson said: “The acquisition of Dorna Sports by Liberty Media marks a significant shift in global motorsport.
“With F1 and MotoGP now under one commercial umbrella, Liberty effectively controls the two premier international racing series – a move that has implications for governance, competition and commercial strategy.
“While the EU has approved the deal, questions will remain over whether this creates a de-facto monopoly.”
MotoGP operations
Moto GP operates in nations, such as Thailand, where Formula 1 is exploring expansion while also staging in events once famed for F1 weekends – such as Malaysia and Germany.
The Grand Prix of the United Kingdom is held at Silverstone, like this weekend’s Formula 1 British Grand Prix, while tracks in the likes of Qatar host both disciplines too.
The potential collaboration between the two sports, now part of an organisation which could see its market cap rise after this acquisition, could change the landscape of motorsport in its entirety.
Concludes Wilson: “Ultimately, for me, this deal succeeds if Liberty recognises the distinct DNA of both properties in its stable. There are synergies to be found, especially in operations and promotion, that can enhance brand differentiation and reach.”