Liberty Media, the proprietors of Formula One, announced on Monday their acquisition of MotoGP in a transaction estimated at approximately $4.5 billion, disclosed the American enterprise.
In a statement, MotoGP affirmed that Liberty Media is poised to secure an “approximately 86 percent” interest from Spain-based owners Dorna in a deal estimated at 4.2 billion euros ($4.5 billion), as outlined.
By the end of 2024, the acquisition is expected to be concluded, subject to approvals and clearances from competition and foreign investment law authorities in diverse jurisdictions.
Liberty won’t be the pioneering corporation to have ownership of both Formula One and MotoGP concurrently.
At one point, private equity firm CVC Capital Partners possessed both F1 and MotoGP but had to relinquish ownership of the motorcycle series in order to acquire F1 due to objections from EU competition regulators.
“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 percent of Dorna, with Dorna management retaining approximately 14 percent 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.”
Liberty was not the only company interested in acquiring Dorna.
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According to a report last week in the Financial Times Qatar Sports Investments (QSI), owners of French champions Paris Saint-Germain, and TKO Group Holdings, which comprises mixed martial arts organisation UFC and World Wrestling Entertainment (WWE), had also held talks with Dorna.
However, it was Liberty who emerged as the winner.
“We are thrilled to expand our portfolio of leading live sports and entertainment assets with the acquisition of MotoGP,” said Greg Maffei, Liberty Media President and CEO.
“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.”
Carmelo Ezpeleta, the long-standing CEO, will continue in the position he has held since 1994, with the corporate headquarters remaining in Madrid.
Ezpeleta voiced his eagerness for the continued progress of the 21-race global championship.
“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,” said Ezpeleta.
“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.”
Since Liberty acquired F1 from CVC for eight billion dollars in 2017, the sport has experienced a surge in popularity. Last year, Maffei hinted that while F1 wasn’t up for sale, its value had soared to “a significant amount” exceeding $20 billion.