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