Published on September 10th, 2016 | by Daniel Sherman Fernandez0
Formula 1 Sold to U.S. Media Conglomerate for USD8 Billion
Despite a limited presence in America, Formula One has been sold to the Colorado based conglomerate, Liberty Media. Meet the new boss, which is the same old boss. Though the exclusive Formula One race series has been sold to a U.S. media conglomerate, at least one thing will stay the same: controversial CEO Bernie Ecclestone will remain the CEO of the powerful motor sports empire.
Transaction price represents enterprise value for Formula One of USD8.0b. Initial sale of 18.7% minority stake in Formula One, with 100% sale subject to satisfaction of conditions
Liberty Media owns interests in a broad range of media, communications and entertainment businesses. Those interests are attributed to three tracking stock groups: the Liberty SiriusXM Group, the Liberty Braves Group, and the Liberty Media Group. The deal was seen as positive for a sport featuring famous car brands such as Ferrari and Mercedes, as well as for buyer Liberty Media, owned by U.S. cable TV mogul John Malone.
The consideration comprises cash and newly issued shares in the Liberty Media Group tracking stock (LMCK) and a debt instrument exchangeable into shares of LMCK. The transaction price represents an enterprise value for Formula One of USD8.0 billion and an equity value of USD4.4 billion.
The acquisition will be effected by Liberty Media acquiring 100% of the shares of Delta Topco, the parent company of Formula One (Delta Topco herein referred to as “Formula One”).