Liberty Media, the owner of Formula One, has agreed to buy MotoGP for $3.8 billion.
Liberty Media Corp., the owner of Formula One, has agreed to buy the MotoGP World Championship from Bridgepoint and the Canada Pension Plan Investment Board for $3.8 billion (€3.5 billion). Liberty Media is acquiring MotoGP’s exclusive rights holder, Dorna Sports, in exchange for cash and Series C Liberty Formula One common stock. The agreement will combine one of the world’s largest motorsports brands with MotoGP, which is sometimes referred to as the two-wheeled version of Formula One.
MotoGP is the latest asset to be acquired by billionaire John Malone’s huge Liberty Media conglomerate, which already comprises a diverse variety of media, communications, and entertainment companies, including concert producer Live Nation Entertainment Inc. Since acquiring F1 in 2016, Liberty Media has targeted major countries, notably the United States, attempted to increase the sport’s appeal through digital streaming, and hit gold with the show Drive to Survive.
Antitrust regulators may scrutinise the purchase. CVC Capital Partners Ltd. was compelled to sell MotoGP over two decades ago in order to obtain antitrust approval from European regulators for its 2005 Formula One acquisition. According to a company statement, MotoGP plans to hold 21 races in 17 nations this season. Liberty said it will fund the purchase with a combination of cash and debt and expects it to close by the end of 2024. Dorna Sports’ Chief Executive Officer, Carmelo Ezpeleta, will continue to lead the company.
Liberty Media intends to bring MotoGP events to a “wider global audience,” CEO Greg Maffei said in a statement Monday. “The business has significant upside, and we intend to grow the sport for MotoGP fans, teams, commercial partners and our shareholders,” he went on to say. Goldman Sachs & Co. LLC served as Liberty Media’s financial adviser and is providing committed loan financing. O’Melveny & Myers LLP serves as legal representation. Dorna’s financial adviser is Moelis & Company LLC, while her legal counsel is Latham & Watkins LLP.
