(Reuters) – Liberty Media, the U.S.-based owner of Formula One, has revealed plans to acquire MotoGP’s parent company Dorna, as stated in a press release by MotoGP on Monday.
In its official statement, MotoGP announced that Liberty Media will take over approximately 86% of Dorna, while the current management will retain around 14% of their equity. The deal values Dorna/MotoGP at €4.2 billion ($4.53 billion) in enterprise value and €3.5 billion in equity value.
Greg Maffei, president and CEO of Liberty Media, expressed his enthusiasm about expanding their portfolio with the addition of MotoGP. Meanwhile, Carmelo Ezpeleta, CEO of Dorna, shared his excitement for the future of MotoGP and its impact on fans.
The completion of the acquisition is projected to take place by the year’s end, pending necessary clearances and approvals from legal authorities, according to MotoGP.
Given the magnitude of the deal, there is anticipation that regulatory bodies may scrutinize the takeover. CVC Capital Partners, the previous owners who sold Formula One to Liberty in 2017, received clearance from the European Commission in 2006 to acquire F1 with the condition of divesting Dorna.
It’s worth noting that based on the exchange rate at the time, $1 was equivalent to 0.9270 euros according to the report.
Contributed by Chiranjit Ojha in Bengaluru, the article was edited by Ed Osmond.
