F1: Liberty Media to sell Formula 1 Shares to Fund MotoGP Acquisition

Formula One owner Liberty Media has announced plans to acquire an 86% stake in MotoGP from Dorna Sports, the current majority shareholder. Liberty will sell its £630 million stake in F1 to finance this acquisition. The sale of over 10 million F1 shares, priced at $77.50 each, is expected to generate the necessary funds for the MotoGP takeover. Liberty's interest in MotoGP first came to light in April, and after lengthy negotiations, they secured the deal by outbidding Qatar Sports Investments, the owners of PSG. The proceeds from the F1 stake sale will primarily be used to fund the MotoGP acquisition.

Additionally, some of the funds will be allocated to reduce Liberty Media's existing debt. This strategic move aligns with Liberty Media's expanding presence in the global motorsport industry. By acquiring a controlling interest in MotoGP, they aim to further strengthen their position and capitalise on the growing popularity of motorcycle racing.

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In a statement, Liberty Media said, 'Liberty Media Corporation announced today that it has priced the previously-announced public offering of 10,650,000 shares of its Series C Liberty Formula One Common Stock (“FWONK”) at a public offering price of $77.50 per share. Liberty Media also granted the underwriter of the offering an option to purchase up to an additional 1,597,500 FWONK shares.

'The offering is expected to close on August 22, 2024, subject to the satisfaction of customary closing conditions, and is expected to result in approximately $825,375,000 in gross proceeds to Liberty Media, before deducting the underwriter’s discounts and estimated offering expenses payable by Liberty Media.

'Liberty Media intends to exercise its option to deliver additional cash in lieu of shares of FWONK as part of its previously disclosed proposed acquisition of Dorna Sports, S.L., such that all the consideration paid will be comprised of cash and no shares of FWONK will be issued to the sellers.'

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Since taking ownership of Formula 1 in 2016, Liberty Media has successfully improved the series. Under their leadership, Formula 1 has witnessed a surge in its popularity, resulting in unprecedented growth in viewership and revenue. With this success as a blueprint, Liberty is now focused on expanding its influence in the motorsport world by acquiring a controlling stake in MotoGP. Notably, Carmelo Ezpeleta, a prominent figure in MotoGP, and his son, Carlos, will retain their significant roles within the organisation, ensuring a smooth transition and continuity in the sport's management.