Jenson Button has backed Liberty Media’s takeover of Formula One as he thinks it will help the sport attract a younger audience.
Advertisement
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.
Liberty Media further said that it had already acquired a minority 18.7% stake in Formula One in an all-cash $746m deal.
Liberty Media Group announced Wednesday it had reached an agreement with the owners of Formula One (F1) to buy the vehicle racing business for an equity value of $4.4 billion.
In the U.K., Liberty Media owns Virgin Media, which is competing directly with Rupert Murdoch’s Sky TV. Bernie Ecclestone, who has headed F1 for the past four decades, will remain CEO. Liberty Media said the transaction price represents an enterprise valuation of $8bn for Formula One and an equity value of $4.4bn.
“We are excited to become part of Formula 1”, said Greg Maffei, chief executive of Liberty Media.
“We’re all partners in the business – simply, Formula One and the teams should basically grow the business going forward”.
A frenetic period for the ownership and management of F1 could also involve Chase Carey, a former DirecTV and News Corporation executive. Prior to completion, CVC Funds will continue to be the controlling shareholder of Formula One.
The deal is subject to the approval of the Fédération Internationale de l’Automobile – the governing body of Formula One.
Ecclestone will receive £300m for his 5.3% stake in the company, now controlled by investment vehicle CVC Capital, and a stake owned by his family trusts, which will ultimately benefit his daughters, could gain close to £500m.
His Liberty Media also owns Major League Baseball team Atlanta Braves and has a controlling interest in radio company Sirius XM.
“Bernie has been a wonderful CEO for us over the last 10 years”, he said in a statement.
Ecclestone added that he welcomed the company into the sport and looked forward to working with them.
The US has also been a stubborn market to crack, and Liberty will hope to have more success given their roots.
Hopefully the shifting business of Formula One will amount to renewed prosperity for one of the world’s most storied racing series.
Advertisement
To head the organization, Liberty says it will name veteran entertainment studio executive Chase Carey as the chairman of Formula One.
