US-based mass media company Liberty Media Corporation, the owner of Formula 1, has announced an agreement to acquire MotoGP, the pinnacle of motorcycle racing with more than 20 Grands Prix across five continents. Liberty Media’s businesses are attributed to three tracking stock groups: the Liberty SiriusXM Group, the Formula One Group and the Liberty Live Group. The new agreement will see Dorna Sports S.L., the exclusive commercial and television rights holder of MotoGP, remain an independently run company attributed to Liberty Media’s Formula One Group tracking stock.
Liberty Media will acquire approximately 86 percent of Dorna, with Dorna management retaining around 14 percent of its stake in the business. The deal reflects an enterprise value for Dorna/MotoGP of €4.2 billion and an equity value of €3.5 billion. MotoGP’s existing debt balance is expected to remain in place after closing. Carmelo Ezpeleta, who has been Dorna’s CEO since 1994, will remain in his position and continue to run the business with his management team. Dorna will continue to be based in Madrid.
The acquisition is expected to be completed by the end of this year, subject to the receipt of clearances and approvals by competition and foreign investment law authorities in various jurisdictions.
Image: Harlie Raethel on Unsplash
