In April, it was announced that Liberty Media would acquire 86% of the shares of Dorna Sports, the Spanish company that has owned MotoGP since 1992. The deal was valued at $4.2 billion, while the remaining stake would remain with MotoGP’s management. Now, Liberty Media has announced the sale of a $825 million stake in Formula 1 to finance the purchase of MotoGP.
On Thursday, through a press release, Liberty Media confirmed the sale of the shares: “Liberty Media Corporation today announced the pricing of its public offering of 10,650,000 shares of its Series C Liberty Formula One Common Stock (‘FWONK’) at a price of $77.50 per share. Liberty Media has also granted the underwriter of the offering an option to purchase an additional 1,597,500 shares of FWONK.”
“Liberty Media intends to exercise the option to deliver additional cash in place of FWONK shares in connection with the previously announced proposed acquisition of Dorna Sports, S.L., so that all consideration paid will be in cash and no FWONK shares will be issued to the sellers.”
As reported by motorsport.com, the agreement between the two companies has been delayed more than expected. The two giants had agreed to announce the deal before the start of the 2024 season, in other words, by March.
Liberty Media rejected interest from companies such as Qatar Sports Investments, the country’s sovereign fund, and TKO, owner of Ultimate Fighting Championship and World Wrestling Entertainment, in order to add MotoGP. CEO Greg Maffei, speaking about the transaction, stated, “We are excited to expand our portfolio of live sports and entertainment businesses with the acquisition of MotoGP, which is a global championship with a loyal and enthusiastic fan base, thrilling races, and a highly cash-generative financial profile. Carmelo Ezpeleta, CEO of Dorna, and his management team have built a great sports spectacle that we can expand to a broader global audience. The business has significant upside, and we intend to grow this sport for MotoGP fans, teams, commercial partners, and our shareholders.”
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