- Liberty Media to take 84% stake in MotoGP’s commercial rights holder Dorna
- Deal received unconditional approval from European Commission last month
US media company Liberty Media has completed its acquisition of MotoGP commercial rights holder Dorna Sports.
The €4.2 billion (US$4.9 billion) deal will see Formula owner Liberty Media take an 84 per cent stake in Dorna, with the remaining 16 per cent retained by MotoGP management.
The purchase price for Liberty Media’s 84 per cent stake will be paid in cash.
The global motorcycling series will continue to be led by chief executive Carmelo Ezpeleta and his existing senior management team, including chief operating officer Enrique Aldama, chief commercial officer Dan Rossomondo and chief sporting officer Carlos Ezpeleta.
Liberty Media’s board of directors and management team, including Chase Carey and Sean Bratches, will also join the Dorna board.
The closing of the transaction means Liberty Media’s Formula One Group is now composed of its subsidiaries Formula One, MotoGP, sports and entertainment event experiences company Quint, as well as other minority investments.
Related posts
- MotoGP 2024 season review: What is Liberty Media acquiring?
- What’s the state of MotoGP’s sponsorship portfolio ahead of Liberty Media’s takeover?
Liberty Media announced a deal for MotoGP in April 2024 and it was supposed to be finalised by the end of that year, but regulatory red tape put paid to those hopes. Teresa Ribeira, the chief of the European Union’s (EU) antitrust department, opened a probe into the takeover in December 2024.
According to Bloomberg, Ribeira was concerned the acquisition could hamper competition in broadcasting and streaming markets, given Liberty Media also owns Formula One. This may have been influenced by a similar probe into CVC Capital Partners in 2006, when EU competition regulators decided the private equity firm had to sell one of MotoGP or Formula One.
Liberty Media, however, remained optimistic throughout that the acquisition would be completed. The takeover subsequently received unconditional approval by the European Commission (EC) last month, paving the way for the deal to finally close.
An official presentation from Liberty Media, released alongside the announcement confirming the acquisition had been completed, described MotoGP as a ‘scarce league-level asset with broad commercial rights to monetise IP as one of the most thrilling sports on earth’.
The presentation also cited MotoGP’s ‘attractive financial profile with high free cash generation driven by diverse, contracted revenue and minimal capital intensity’.
Speaking after the European Commission approved the acquisition, Liberty Media president and chief executive Derek Chang said: “MotoGP is a highly attractive premium sports asset with incredible racing, a passionate fanbase and a strong cash flow profile.
“We believe the sport and brand have significant growth potential, which we will look to realise through deepening the connection with the core fan base and expanding to a wider global audience.”
Don’t miss the latest news and insights from across the business world of motorsport. Subscribe to the BlackBook Motorsport Weekly newsletter here.