Formula One owner Liberty Media announces MotoGP takeover
3 min readFormula One’s US-based owner Liberty Media on Monday introduced it has agreed to accumulate Dorna Sports, S.L., the unique industrial rights holder to the MotoGP World Championship, from Bridgepoint and Canada Pension Plan Investment Board.
“MotoGP can be attributed to Liberty Media’s Formula One Group monitoring inventory,” Liberty Media mentioned in a press release.
MotoGP is the top of bike racing and options breathtaking races with prime speeds above 360 kilometers per hour (223 miles per hour) and lean angles of over 60 levels.
From its first season in 1949 that staged six rounds throughout Europe, MotoGP has grown considerably and can host 21 races throughout 17 international locations for the 2024 season.
The enterprise advantages from a pretty monetary profile with diversified and contracted income streams, excessive EBITDA margins and low capital depth leading to important free money move.
Carmelo Ezpeleta, CEO of Dorna since 1994, will proceed to run the enterprise headquartered in Madrid.
“We are thrilled to broaden our portfolio of main dwell sports activities and leisure property with the acquisition of MotoGP,” mentioned Greg Maffei, Liberty Media President and CEO. “MotoGP is a worldwide league with a loyal, enthusiastic fan base, fascinating racing and a extremely money move generative monetary profile. Carmelo and his administration staff have constructed an important sporting spectacle that we are able to broaden to a wider world viewers. The enterprise has important upside, and we intend to develop the game for MotoGP followers, groups, industrial companions and our shareholders.”
“This is the right subsequent step within the evolution of MotoGP, and we’re excited for what this milestone brings to Dorna, the MotoGP paddock and racing followers,” mentioned Carmelo Ezpeleta, CEO of Dorna. “We are pleased with the worldwide sport we’ve grown, and this transaction is a testomony to the worth of the game at this time and its development potential. Liberty has an unimaginable observe report in growing sports activities property and we couldn’t want for a greater accomplice to broaden MotoGP’s fanbase all over the world.”
Liberty Media will purchase 86 % of MotoGP with MotoGP administration retaining roughly 14 % of their fairness within the enterprise.
The transaction displays an enterprise worth for MotoGP of €4.2 billion and an fairness worth of €3.5 billion with the present debt stability at MotoGP anticipated to stay in place after shut.
The fairness consideration to sellers is predicted to be comprised of roughly 65 % money, 21 % in shares of Series C Liberty Formula One widespread inventory (Nasdaq: FWONK) and 14 % of retained MotoGP administration fairness.
The money consideration can be funded with a mixture of money and debt, topic to market circumstances.
The FWONK share consideration can be priced on a 20-day quantity weighted common value previous to transaction shut.
Liberty Media retains an possibility at its sole discretion to ship extra money in lieu of FWONK widespread inventory.
The acquisition is predicted to be accomplished by year-end 2024 and is topic to the receipt of clearances and approvals by competitors and overseas funding legislation authorities in varied jurisdictions.
Goldman Sachs & Co. LLC is appearing as monetary advisor to Liberty Media and is offering dedicated debt financing for the transaction, and O’Melveny & Myers LLP is appearing as authorized counsel. Moelis & Company LLC is appearing as monetary advisor to Dorna, and Latham & Watkins LLP is appearing as authorized counsel.