The company that owns Formula 1, Liberty Media Corp., is buying another racing league called MotoGP World Championship. They’re getting it from Bridgepoint and Canada Pension Plan Investment Board in a deal worth $3.8 billion (€3.5 billion).
Liberty Media is buying MotoGP’s exclusive rights holder, Dorna Sports, which is based in Madrid. They’re paying with a mix of money and shares in their Formula One company. This deal will bring together two of the biggest motor-racing brands in the world, Formula 1 and MotoGP.
MotoGP is just the latest enhancement to Liberty Media’s big collection of media, communication, and entertainment businesses. They already own things like concert promoter Live Nation Entertainment Inc. They bought Formula 1 in 2016 and have been trying to make it more popular, especially in the U.S., by streaming it online and making shows like Drive to Survive.
However, this deal might cause some problems with regulators who make sure companies don’t get too big and control everything. Almost twenty years ago, a company called CVC Capital Partners Ltd. had to sell MotoGP because regulators in Europe were worried they would have too much control over racing. MotoGP plans to have 21 races in 17 countries this year.
Liberty Media says they’re paying for the deal with a mix of money and loans and they hope to finish it by the end of 2024. The current boss of Dorna Sports, Carmelo Ezpeleta, will still run the business.
Liberty Media wants to make MotoGP even bigger and get more people around the world to watch it, says CEO Greg Maffei. They think there’s a lot of potential to make the business even better for fans, teams, and their shareholders.
Goldman Sachs & Co. LLC is helping Liberty Media with the money side of the deal, and a law firm called O’Melveny & Myers LLP is helping with the legal stuff. Another company called Moelis & Company LLC is advising Dorna, and Latham & Watkins LLP is their legal counsel.
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