John Malone’s Liberty Media agreed to buy the company that controls Formula One from private-equity firm CVC Capital Partners for $US4.4 billion in cash, stock and convertible debt, CNBC reported.
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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”.
CVC Capital Partners, which has controlled the world’s most popular motor sport series for a decade, now owns 35% of the shares but those shares have majority rights under the company’s voting rules.
One of those shareholders is F1 chief executive Bernie Ecclestone, the 85-year-old former auto salesman who has run the sport for 40 years and built it into the global entertainment business it has become.
To head the organization, Liberty says it will name veteran entertainment studio executive Chase Carey as the chairman of Formula One.
A director of Sky plc, owner of Sky News, Casey said in a statement: “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”.
Greg Maffei, chief executive of Liberty Media, is looking forward to expanding the popularity of Formula 1: “We are excited to become part of Formula One”.
It could also accelerate the exit of 85-year-old Bernie Ecclestone, the Briton who has run the sport for almost 40 years and built up a business with annual turnover of around $1.9 billion.
A controversial figure, who has become as much a celebrity as any of the drivers, “Bernie” has been a part of Formula One ever since the 1950s.
It also spins in millions in profits from Formula One-branded merchandise.
CVC is F1’s biggest shareholder with a 35.5 percent stake, followed by USA fund manager Waddell & Reed with just over 20 percent. Among other investors, Ecclestone holds 5.3 percent and his family’s Bambino Trust another 8.5 percent. Even Ecclestone has noticed that, which has led to a testy relationship with CVC Capital Partners, who have given a good impression of an owner more than happy to watch its prize asset sweat while it counts the money.
Mackenzie added: “The combined skills of Chase and Bernie mean that the successes should continue and we wish them well”.
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The remainder of the deal would see Liberty Media Corp acquiring the remaining 78% of the company, which would be subject to the approval of certain regulators as well as the FIA, world motorsport’s governing body. 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.
