A deal valued at around $4.5 billion has been agreed by Formula One owners Liberty Media to acquire Moto GP.
MotoGP disclosed in a statement that Liberty Media would own an “approximately 86 per cent” stake upon acquisition from Spain-based owners Dorna in a deal valued at 4.2 billion euros ($4.5 billion).
“Liberty Media Corporation has announced an agreement to acquire MotoGP. MotoGP is the pinnacle of two wheels,” read a statement issued by MotoGP.
“Liberty Media will acquire approximately 86 per cent of Dorna, with Dorna management retaining approximately 14 per cent of their equity in the business.
“The transaction reflects an enterprise value for Dorna/MotoGP of €4.2 billion and an equity value of €3.5 billion, with MotoGP’s existing debt balance expected to remain in place after close.”
Speaking, Greg Maffei, Liberty Media President and CEO said, “We are thrilled to expand our portfolio of leading live sports and entertainment assets with the acquisition of MotoGP.”
“MotoGP 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.”
Meanwhile, Long-serving CEO Carmelo Ezpeleta will retain the post he has manned for 30 years with the business headquarters remaining 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,” Ezpeleta said.
“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.”
However, Liberty will not be the first company to own both Formula One and MotoGP.
CVC Capital Partners previously owned both F1 and MotoGP but was forced to sell the motorcycle series to buy F1 after EU competition regulators opposed the move.
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