U.S. firm Liberty Media has confirmed it is buying the racing business Formula 1 for $4.4bn (£3.3bn).
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Liberty Media have confirmed that it has agreed a deal to takeover Formula 1 for 4.4bn USA dollars (£3.3bn).
Liberty is acquiring the franchise from CVC Capital Partners, “a private equity firm that purchased London-based Formula One a decade ago”, Yuki reports.
Liberty said it would keep Ecclestone, who built Formula One into a global operation over almost four decades, as chief executive, but also named 21st Century Fox vice chairman Chase Carey as the company’s new chairman.
Meanwhile, Jean Todt acknowledged Liberty’s expertise ins sports and media, and said he looked forward to working with the company.
“I see great opportunity to help Formula One continue to develop and prosper for the benefit of the sport, fans, teams and investors alike”.
Carey played an instrumental role in the launching and development of Fox Sports’ TV channel when he served as the company’s chief executive in 1994. “We do think there are opportunities to enhance the race calendar”.
The report notes that no American drivers are now running in Formula One, but adds: “Celebrity drivers like Lewis Hamilton, the current world champion, have become fixtures on the fashion and music circuits”.
Paddock gossip at last weekend s Italian Grand Prix made it clear that Liberty had already sold their vision of the future successfully before completing the deal and Carey on Thursday endorsed that impression in a media conference call. “We tried, but maybe they are the people that can get it done”.
Team bosses and other paddock insiders expect Ecclestone to be eased out only gradually, given his intimate knowledge of the business.
Under the leadership of legendary British entrepreneur Bernie Ecclestone, Formula One has grown rapidly since the 1970s, attracting broadcasting deals and corporate sponsors ranging from luxury watchmakers to fuel suppliers. Ecclestone has 5.3 percent stake in F1 but his family Bambino Trust has a further 8.5 percent, rounding up his involvement up to about 14 percent.
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.
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It was announced on Wednesday that Liberty Media – which has stakes in several sports and entertainment businesses – had agreed a full takeover of the world’s leading racing championship, subject to approval by regulators.
