Formula One entered a new era on Wednesday as United States billionaire John Malone’s Liberty Media agreed a takeover that values the sport at US$8 billion and raises questions over the role of its colorful, long-time mastermind, Bernie Ecclestone.
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His Liberty Media also owns Major League Baseball team Atlanta Braves and has a controlling interest in radio company Sirius XM.
Liberty said it would keep Bernie Ecclestone, who built Formula One into a global operation over almost four decades, on as chief executive, but also named Chase Carey, the vice chairman of 21st Century Fox, as the company’s new chairman.
Analyst Allan Nichols of Morning Star said the Formula One deal could help to strengthen Malone’s American Charter cable business.
“I am thrilled to take up the role of chairman of Formula One and have the opportunity to work alongside Bernie Ecclestone, CVC [the current majority stakeholders], and the Liberty Media team”, said Carey.
Once regulatory approval has been secured, Liberty will take full control of F1. Liberty Media has agreed to buy Delta Topco (the parent company of F1) for over $8 billion dollars (53 thousand crores).
Formula One teams and sponsors have long chafed at the lack of a marketing and digital strategy for the sport, with Ecclestone focusing on generating piles of cash for shareholders through television rights and race hosting fees. It will also assume a current debt of $4.1 billion in Formula 1.
Earlier, he said in an interview with Reuters that he had been asked to stay on for three years and would miss the Singapore Grand Prix on 18 September as he needed be in London for the negotiations. F1 has found lots of success globally, but has found the US market tougher to crack; Liberty Media may be able to help them there.
Formula 1 teams will be given the chance to claim their own stake in the championship, as part of Liberty Media’s takeover. “The combined skills of Chase and Bernie mean that the successes should continue and we wish them well”.
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Liberty Media Corp., which is controlled by 75-year-old tycoon John Malone, has ended years of uncertainty about the ownership of the auto racing series with Wednesday’s deal. In a statement he said: “I would like to welcome Liberty Media and Chase Carey to Formula One and I look forward to working with them”.
