There have been murmurings for a while now, but it’s now official. Liberty Media has agreed to acquire Formula One in a deal valuing the motorsport at US$8-billion.
The corporation agreed to buy an initial 18.7% stake in the sport, with a 100% sale “subject to satisfaction of conditions”.
Liberty Media shed more light on the sale in a press statement.
“After completion of the acquisition, Liberty Media will own Formula One 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 One 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.”
Liberty Media will acquire an 18.7% stake in F1 initially
Bernie Ecclestone will stay on as CEO while Chase Carey is the new chairman of F1.
“I am thrilled to take up the role of chairman of Formula One and have the opportunity to work alongside Bernie Ecclestone, CVC, and the Liberty Media team. 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,” Carey said in the statement.
Liberty Media confirmed that the teams will also be given an opportunity to invest in F1, adding that “certain teams” have already expressed interest.
The deal is expected to close in the first quarter of 2017.
Here’s hoping F1 pulls a MotoGP and implements a proper streaming service…