Liberty Media announced on Wednesday evening it has agreed a deal to purchase F1 which values the sport at $8bn (£6bn).
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In the shorter term, Liberty is purchasing 18.7 percent of the sport for $1.1bn in cash, finalising the remainder of the purchase when the deal is approved by regulators, the BBC reported. It will also assume its debt, lifting the overall transaction value to $8 billion.
In an interesting twist, CVC Partners will own about 65 percent of this new Formula One Group, but it won’t have control of voting shares.
This will definitely help the future of the sport, most sports are going down a certain directions with apps and Formula 1 is behind in that area and getting out to a younger audience.
Chase Carey said: “I am thrilled to take up the role of Chairman of Formula One and have the opportunity to work alongside Bernie Ecclestone, CVC, and the team”.
The BBC reports that current F1 boss Bernie Ecclestone will remain on as chief executive for at least the next three years, while vice-chairman at 21st Century Fox, Chase Carey, would become the new chairman.
CVC took control of the sport back in 2006 for $2bn. Ecclestone has stated, however, that Liberty Media – run by media mogul and billionaire philanthropist John Malone – will not simply be coming into F1 for the fun of it.
Putting an end to years of speculation, USA based mass media company “Liberty Media” has confirmed that the firm will be the new owners of Formula One.
“I have nothing but respect for the business Bernie has built”, Carey told Sky Sports News.
The broader Liberty group runs a wide range of media-centric businesses, including Time Warner cable television, concert promoter Live Nation, the Atlanta Braves Major League Baseball team, and a stake in Formula E, the all-electric vehicle version of Formula One series launched in 2012. He said: “I would like to welcome Liberty Media and Chase Carey to F1 and I look forward to working with them”. “The franchise makes money through TV rights, sponsorships and deals with teams”.
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