Liberty Media buys Formula 1 in a $8.5 billion deal
The speculations and waiting are over – the US firm Liberty Media is buying the Formula 1 with the total cost of the takeover of 8.5 billion dollars. The deal is confirmed in an announcement sent by an American entertainment and media giant, owned by John Malone, explaining that Liberty Media are buying 100 percent of the shares of Delta Topco, who are the parent company of Formula 1, from CVC Capital Partners.
Chase Carey, the current vice-chairman of 21st Century Fox, would be a new chairman, while 85-year-old Bernie Ecclestone, who would put more than 400 million dollars in his pocket, will stay on as chief executive.
„After completion of the acquisition, Liberty Media will own Formula 1 and it will be attributed to the Liberty Media Group which will be renamed the Formula One Group. The consortium of sellers led by CVC will own approximately 65% of the Formula One Group’s equity and will have board representation at Formula 1 to support Liberty Media in continuing to develop the full potential of the sport. In addition, a CVC representative will be joining the Liberty Media board of directors.
Chase Carey has been appointed by Delta Topco and will serve as the new chairman of Formula 1, succeeding Peter Brabeck-Letmathe, who will remain on Formula 1’s board as a non-executive director. Bernie Ecclestone will remain Formula 1’s CEO“, the statement said.
“I greatly admire Formula One as a unique global sports entertainment franchise attracting hundreds of millions of fans each season from all around the world. I see great opportunity to help Formula One continue to develop and prosper for the benefit of the sport, fans, teams and investors alike”, Chase Carey added.
In the first phase of the takeover, Liberty Media will take 18.7 percent stake in F1 for a $1.1billion cash. Liberty Media will invest $4.4billion equity in total, plus assuming $4.1bn of Formula One’s debt. The deal is expected to close in the first quarter of 2017.