F1: Liberty Media to sell Formula 1 stake to fund MotoGP

Formula 1 owner Liberty Media has announced plans to acquire an 86% stake in MotoGP from current majority shareholder Dorna Sports. To finance this major acquisition, Liberty will sell its stake in F1 worth £630 million. The sale of over 10 million F1 shares at a price of $77.50 per share is expected to raise the necessary funds for the acquisition of MotoGP. Liberty’s interest in MotoGP first surfaced in April and after lengthy negotiations, they won the deal by outbidding PSG owner Qatar Sports Investments. The proceeds from the sale of the F1 stake will be used primarily to finance the MotoGP acquisition. In addition, part of the funds will be used to reduce Liberty Media’s existing debt. This strategic move is in line with Liberty Media’s growing presence in the global motorsports industry. By acquiring a controlling stake in MotoGP, they aim to further consolidate their position and capitalize on the growing popularity of motorcycle racing.

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

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

“As part of its previously disclosed proposal to acquire Dorna Sports, SL, Liberty Media intends to exercise its option to replace the FWONK shares with additional cash, such that all consideration payable will consist of cash and no FWONK shares will be issued to the Seller.”

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Since taking over Formula 1 in 2016, Liberty Media has successfully transformed the series. Under their leadership, Formula 1 has soared in popularity, with unprecedented growth in viewership and revenue. With this success as a blueprint, Liberty is now focused on expanding its presence in the racing world by acquiring a controlling stake in MotoGP. Significantly, MotoGP standout Carmelo Espeleta and his son Carlos will continue to hold key positions within the organization, ensuring a smooth transition and continuity in the management of the sport.