Liberty Media has won the bidding to acquire the Formula One racing series from CVC. Carey believes that, Formula One will be a low risk business model for Liberty Media.
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After plenty of speculation, it’s finally been confirmed that American company Liberty Media has shelled out a sum of GBP 3.3 billion, to buy Formula 1. CVC, the current largest shareholder of F1, will wind up holding around 65 per cent of the new company, which will eventually change its name to Formula One Group. Bernie Ecclestone – CEO of Formula One Management Group – will continue in his role post deal.
Bernie Ecclestone, 85, who has been at the helm of Formula 1 for more than 40 years, will remain in place as CEO. He was previously the executive vice chairman of 21 Century Fox.
He said: “I greatly admire Formula One as a unique global sports entertainment franchise attracting hundreds of millions of fans each season from all around the world”.
Formula One teams will be given the chance to invest in the sport after Liberty Media’s takeover but the smaller ones are hoping the new owners will also help them become more competitive on the track.
Sky’s City Editor Mark Kleinman said: “The overall deal may not be complete for a few months, but there’s no doubt that this is a very significant moment for Formula One”.
The 100% takeover is dependant on some conditions being met, including approval of the deal by governing body the FIA.
Ecclestone added that he welcomed the company into the sport and looked forward to working with them.
There’s a new chairman in place – Chase Carey, who is now the executive vice chairman of 21st Century Fox, will take over the role from Peter Brabeck-Letmathe.
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Reluctant to delegate, however, he has not groomed a successor and critics have accused him of holding back the sport through a failure to embrace fully new media or the digital marketplace, something Liberty is expected to make a priority. There have been many successes and the occasional challenge but there has never been a tiresome moment and we have had a lot of fun. “His leadership has served the company well, and we are pleased that he will remain on the board as a non-executive director”.
