Liberty Media purchases Formula 1posted in F107 | 09 | 2016

    LIBERTY MEDIA CORPORATION has confirmed its initial takeover of Formula 1. Today’s announcement also confirms that Chase Carey has been appointed chairman, with Bernie Ecclestone retaining his position as CEO.

    A statement issued by Liberty Media declares it has agreed to acquire F1 from a consortium of sellers led by majority shareholder CVC Capital Partners.

    Liberty Media will acquire 100% of the shares of Delta Topco, the parent company of F1. Concurrent to that it has completed the acquisition of an 18.7% minority stake for $746million (£559m).

    Before that deal is completed — it’s scheduled to be concluded  in the first quarter of 2017 — CVC Funds will continue to be the controlling shareholder of Formula 1.

    However, once the deal is completed, Liberty Media will become the largest shareholder with a 35.5% stake: CVC will retain a 24.7% share after selling off a 13.4% interest.

    "After completion of the acquisition, Liberty Media will own Formula 1 and it will be attributed to the Liberty Media Group which will be renamed the Formula One Group,” the statement added.

    "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 1 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.

    "Chase Carey has been appointed by Delta Topco and will serve as the new chairman of Formula 1, succeeding Peter Brabeck-Letmathe, who will remain on Formula 1's board as a non-executive director.

    "Bernie Ecclestone will remain Formula 1's CEO."

    The statement also confirmed "the transaction price represents an enterprise value for Formula 1 of $8.0billion and an equity value of $4.4 billion".

    The news was welcomed by Ecclestone.

    “I would like to welcome Liberty Media and Chase Carey to Formula 1 and I look forward to working with them,” he said in a statement.

    Liberty Media president and CEO Greg Maffei added: "We are excited to become part of Formula 1.

    "We think our long-term perspective and expertise with media and sports assets will allow us to be good stewards of Formula 1 and benefit fans, teams and our shareholders.

    "We look forward to working closely with Chase Carey and Bernie Ecclestone to support the next phase of growth for this hugely popular global sport."

    Carey is currently the executive vice chairman of 21st Century Fox.

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    Jim McGill

     

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