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US-Based Firm Agrees To Purchase Formula One For $4.4 Billion
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US-based Liberty Media has agreed to acquire Formula One from a consortium of sellers led by CVC Capital Partners.
Liberty Media, which invests in entertainment and sports properties, has said it will buy the racing series for $4.4 billion. Bernie Ecclestone will remain CEO of Formula One, according to Liberty Media.
Liberty Media, which is led by US cable TV pioneer John Malone, is the world’s largest international television and broadband company, operating in more than 30 countries in Europe, Latin America, and the Caribbean through different brand names.
The deal, with an enterprise value of $8 billion, signals a new era for a European-dominated sport that has long sought to penetrate the US market.
Under the deal, Liberty Media will acquire all shares of Delta Topco, the parent company of Formula One. Liberty Media has also completed the acquisition of an 18.7% minority stake in Formula One for $746 million, funded wholly in cash.
The consortium of sellers led by CVC will own 65% of the Formula One Group’s equity, and will retain seats on the racing company’s board. A CVC representative will also join Liberty Media’s board of directors.
Chase Carey has been appointed by Delta Topco and will serve as the new Chairman of Formula One, succeeding Peter Brabeck-Letmathe, who will remain on Formula One’s board as a non-executive director.
Liberty Media will reportedly be renamed Formula One Group after the deal is complete, which is expected by March 2017.
Liberty Media, which invests in entertainment and sports properties, has said it will buy the racing series for $4.4 billion. Bernie Ecclestone will remain CEO of Formula One, according to Liberty Media.
Liberty Media, which is led by US cable TV pioneer John Malone, is the world’s largest international television and broadband company, operating in more than 30 countries in Europe, Latin America, and the Caribbean through different brand names.
The deal, with an enterprise value of $8 billion, signals a new era for a European-dominated sport that has long sought to penetrate the US market.
Under the deal, Liberty Media will acquire all shares of Delta Topco, the parent company of Formula One. Liberty Media has also completed the acquisition of an 18.7% minority stake in Formula One for $746 million, funded wholly in cash.
The consortium of sellers led by CVC will own 65% of the Formula One Group’s equity, and will retain seats on the racing company’s board. A CVC representative will also join Liberty Media’s board of directors.
Chase Carey has been appointed by Delta Topco and will serve as the new Chairman of Formula One, succeeding Peter Brabeck-Letmathe, who will remain on Formula One’s board as a non-executive director.
Liberty Media will reportedly be renamed Formula One Group after the deal is complete, which is expected by March 2017.
