McLaren driver Jenson Button feels Liberty Media’s takeover of Formula One will open up the sport to a new generation of fans.
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According to the CNBC report, Liberty Media will hold a 18.7 percent minority stake immediately and then acquire the remainder of the company when the deal closes, which could be as soon as the first quarter of 2017.
Formula One’s future under CVC has always been in question and a mooted share flotation in Singapore was shelved in 2012.
The sport was in previously in control by CVC Capital Partners.
John Malone’s Liberty Media has agreed to buy the iconic racing series in a deal that values it at $4.4 billion. The consortium of sellers led by CVC will own about 65% in the renamed firm and have board representation at Formula One.
Liberty will acquire 100% of Delta Topco, the parent of Formula One, using shares of its tracking stock, which falls under the LMCK ticker, Liberty said in a statement.
Liberty Media said Formula One teams will be given the opportunity to investment in the business.
Bernie Ecclestone is set to remain as chief executive while Chase Carey has been appointed as chairman. And, despite the fact that ownership has changed hands, F1 supremo Bernie Ecclestone still remains the man in charge of running the show, having confirmed that he will be around for the next three years.
Formula One teams and sponsors have long chafed at the lack of a marketing and digital strategy for the sport, with Ecclestone focussing on generating piles of cash for shareholders through television rights and race hosting fees. He said: “I would like to welcome Liberty Media and Chase Carey to F1 and I look forward to working with them”.
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A deal worth $4.4 billion is made for the racing business. It has been criticised for taking considerable profits from the sport, which has suffered from falling TV ratings in recent years. Only one round of the 21-race championship takes place in the USA: at the Circuit of the Americas in Austin, Texas. Also, Formula One has been hampered by early-morning start times for American fans watching live on Comcast’s (NASDAQ:CMCSA) NBC Sports.
