U.S mass media firm Liberty Media confirmed its acquisition of the racing league Formula 1. A deal worth $4.4 billion is made for the racing business. Liberty Media holds a minor stake of 18.7 percent at present in Formula 1 and now then gets close to ownership in the first quarter of 2017. Vice-chairman of 21st Century Fox, Chase Carey will be the new chairman, whereas Bernie Ecclestone continues to perform duties of chief executive.
Liberty Media owns Stakes in several entertainment and Sports businesses which includes the Atlanta Braves Major League Baseball club. The media house will pay a sum of $1.1 billion in cash, Liberty Media shares worth $351 million and an exchangeable debt instrument of $351 million will be issued by Formula 1 which is convertible to shares of Liberty Media. It will also assume a current debt of $4.1 billion in Formula 1.
“We are excited to become part of Formula One, We think our long-term perspective and expertise with media and sports assets will allow us to be good stewards of Formula One and benefit fans, teams and our shareholders.” said Greg Maffei, chief executive of Liberty Media.
Liberty media tends to make changes in its name to Formula 1 Group after the deal. Current largest stakeholder with 65 percent of Formula 1 shares, CVC, won’t have control of voting shares. This can be considered as one of the biggest deals ever made in sports history and can be noted as one among the critical moments for the F1 league.
Under the ownership of private equity group CVC, the motorsport series observed a remarkable growth concerning global popularity, new races and profits.
Monitored by John Malone, Liberty Media also owns 53 percent shares in Sirius XM Radio, Inc., 26 percent investment in Live Nation Entertainment Company and 27 percent shares in Charter Communications, Inc., as well as smaller investments in Time Warner, Viacom, Barnes & Noble and Sprint Corporation among others.