Formula 1 Sold To John Malone’s Liberty Media for $8.5-B

Formula 1 Sold To John Malone’s Liberty Media for $8.5-B

Formula 1 Sold To John Malone’s Liberty Media for $8-B

$LMCA, $LMCK

Having run Formula 1 with an Iron Hand for 40 years expected Bernie Ecclestone to exit iconic, profitable Tier 1 motorsports event he created single-handed, and even on its sale for about $8.5-B he will stay in his seat of power and influence.

ecclestone_bernie

With the takeover of the iconic motorsport franchise by Liberty Media (NASDAQ:LMCA,LMCK) Mr. Ecclestone, the CEO of the Formula One Group, which controls the sport’s commercial rights, has said the American company “wants me to be here for three years”.

Liberty Media announced Wednesday afternoon that it acquired Formula 1 from a group led by CVC Capital Partners, which bought the majority stake in the racing organization in 2006.

The total price paid will be $8.5-B, $4.4-B being the determined equity value of F1 and $4.1-B in debt.

Chase Carey, who helped launch Fox Sports in the mid-1990’s and who once served as CEO of DirecTV, will become the new Chairman of Formula 1.

Bernie Ecclestone will take about $230-M from his 5.3% stake in the business, will stay on as CEO. The 8.5% stake his family trust has in the business is now worth $375-M in the cash buy out out.

CVC Capital Partners comes away with approximately $6-B from its $2-B purchase a 10 years ago.

Like the Atlanta Braves and SiriusXM, which Liberty also owns, the investment will be converted into a tracking stock that will allow investors to invest in the F1 racing business.

Now, with American owners, a Key area of growth for the brand may be the US, which has not fully embraced F1 racing.

Team Haas became the 1st American-owned F1 team in 30 yrs this year, there is no American driver racing the circuit.

Symbol Last Trade Date Change Open High Low Volume
NASDAQ:LMCA 21.77 7 September 2016 -0.01 21.1 22.25 21.1 578,300
HeffX-LTN Analysis for LMCA: Overall Short Intermediate Long
Neutral (0.21) Neutral (0.03) Very Bullish (0.52) Neutral (0.08)
Symbol Last Trade Date Change Open High Low Volume
NASDAQ:LMCK 21.7 7 September 2016 0.04 21.6 22.09 21.41 642,900
HeffX-LTN Analysis for LMCK: Overall Short Intermediate Long
Bullish (0.30) Neutral (0.10) Very Bullish (0.50) Bullish (0.29)

Stay tuned…

 

 

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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