John Malone’s Liberty Media is expected to make the first of two payments on Tuesday, according to a German magazine.
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German magazine Auto Motor und Sport reported that the agreement was confirmed by chief executive Bernie Ecclestone.
“I will do what I have always done”, Auto Motor und Sport quoted the 85-year-old Ecclestone as saying. “What role I play is my decision”, he said.
F1 is now controlled by CVC Capital Partners, a private equity group that has a 35% stake in Delta Topco, the company that owns the Formula One Group, which includes Formula One Management (FOM) and Formula One Administration (FOA).
Formula One’s biggest shareholders are CVC, with a 35.5 percent stake, and US fund manager Waddell & Reed with 20.9 percent. Ecclestone holds 5.3% stake while his Bambino Trust holds another 8.5% stake.
On the track, I don’t expect too many changes in the short-term, but over time, there could be some modifications to make the races more exciting for the fans. Maybe it is good news, American investment, American media company buys F1.
He accused them of having “no interest whatsoever in the future of Formula One”.
At Monza, it was speculated in the paddock that owner CVC had agreed a sale deal with Liberty Media, headed by U.S. media tycoon John Malone.
His company Liberty Media controls or has invested in everything from SiriusXM satellite radio to the Atlanta Braves; Malone also owns a portion of Discovery Networks, the broad group of programming channels that grew out of the Discovery Channel, and a 49 percent interest in Starz Inc.
Of the potential takeover, Christian Horner, Red Bull’s team principal, said: “It could be a really exciting deal for Formula One if it happens … but for a new group to come in without [Ecclestone] being there would be very hard, so I’d assume he’ll be around for some time”. Waddell & Reed was not available for comment.
Given that Liberty is a media and entertainment group, analysts hope it will give more consideration to the spectacle offered by F1.
It is believed CVC is taking strict control of sale talks without too much influence from Ecclestone – who still spent time in the Monza paddock speaking to CVC co-owner Donald Mackenzie, Ferrari chairman Sergio Marchionne and Daimler head Dieter Zetsche.
“We’ll all wait to see what the news is over the next couple of weeks regarding the ownership and shareholding in F1, if there is any change or redistribution”.
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Historically, Malone’s purchases have increased in value after his acquisitions; the American businessman has targeted businesses with unrealised potential and added value before off-loading his stake for a profit.
