USA billionaire John Malone s Liberty Media, which says it has struck an agreement to buy out Formula One s parent company, wants to do all this without eroding the sport s exclusive brand value.
Advertisement
CVC Capital Partners, a London-based private-equity firm, bought majority control of Formula One in 2006.
Speaking to Sky Sports, Red Bull Racing team principal Christian Horner has welcomed the deal, “Liberty are probably the best buyers for F1”.
Liberty has said it will work closely with teams to ensure their income increases with the sport s growth in popularity.
With TV viewership slumping in some traditionally strong markets like the U.K., Formula One has added races in places like Azerbaijan, expanding to a record 21 events in the current season. And races in the sport’s historical locations have struggled to profit. Ecclestone, who ruled with much secrecy for four decades, was rarely inclined towards any kind of management in that way. While the sale raises questions about Ecclestone’s long-term role, he’ll remain CEO, Liberty Media said.
“While it remains to be seen how this acquisition will influence the promotion of the FIA Formula One championship, we welcome this long-term investment in Formula One by a company that has such a broad portfolio of sports, media and entertainment businesses”, said Todt. But its American television audience has increased by 40% since NBC Sports acquired the domestic broadcast rights in 2013.
The sale comes days after Dutch brewer Heineken started its Formula One sponsorship at the Italian Grand Prix.
But in the six years through 2014, global Formula One viewership slipped to 425 million from 600 million.
“We will reach 500 million fans around the world and 200 million we weren’t talking to”, he said.
Liberty is acquiring an 18.7 per cent stake in Formula 1 parent Delta Topco right away and will take full ownership later, according to a statement on Wednesday.
Liberty Global Plc, a London-listed sister company to Liberty Media, owns cable operator Virgin Media in the United Kingdom and other broadband and TV providers. “If Nascar is known for souped-up stock cars and salt-of-the-earth drivers, Formula One is about space-age engineering and globe-trotting racers”, The New York Times said.
Liberty Media, based in Englewood, Colorado, will initially pay $746 million for its minority stake.
Advertisement
Liberty Media Group will become the Formula One Group when the transaction completes, and its symbols will change from LMCA, LMCB, and LMCK to FWONA, FWONB, and FWONK.
