John Malone Eyeing Investment in Formula One Racing

John Malone Eyeing Investment in Formula One Racing

John Malone Eyeing Investment in Formula One Racing


John Malone is reportedly in discussions to acquire a stake in Formula One (F1) either through Liberty Media Corp (NASDAQ:LMCA) or Liberty Global (NASDAQ:LBTYA), and a deal could involve Chase Carey becoming Chairman of the parent of the iconic motor-racing firm.

Sky News, owned by Sky plc, where Mr. Carey is a board member, reported the negotiations Thursday.

Mr. Carey, who is also a board member at 21st Century Fox, could replace Nestle Chairman Peter Brabeck-Letmathe as Chairman of Formula One, while CEO Bernie Ecclestone, 85 anni, would remain Formula One’s CEO.

According to the reports, Liberty Media and Liberty Global, both controlled by Mr. Malone, are each in talks with CVC Capital Partners, which is Formula One’s controlling shareholder,

Liberty Global is partnering with Discovery Communications in its quest to gain a stake in F1, an entity valued at roughly $8.5-B, but Liberty Media is said to be further along in its negotiations with F1.

Liberty Media has reclassified into 3 tracking stocks, as follows;

  1. One for housing the Atlanta Braves baseball team
  2. One for its majority stake in Sirius XM Radio
  3. One for its minority stakes in Time Warner, Viacom and other media companies.

If Liberty Media obtained a position in F1 it could be absorbed into 1 of the 3 tracking stocks, and Liberty Media could even be renamed to reflect its position in F1, according to Sky News.

Liberty Media declined to comment.

Sky News also reported that Silver Lake, the private equity firm that holds a position in the WME-IMG talent agency, is also considering an investment in F1, “although its recent takeover of the Ultimate Fighting Championship franchise may have dampened its appetite to pursue an imminent deal.”

Others allegedly interested in purchasing stakes in F1 include Apple (NASDAQ:AAPL) as well as the Qatar-based company that owns the Paris Saint-Germain football team. Also, Sky plc (OTCMKT:BSYBF) may be interested.

Symbol Last Trade Date Change Open High Low Volume
NASDAQ:LMCA 21.06  26 August 2016 -0.20 21.33 21.43 20.94 161,103
HeffX-LTN Analysis for LMCA: Overall Short Intermediate Long
Neutral (-0.02) Neutral (-0.12) Neutral (0.15) Neutral (-0.08)

Have a terrific weekend.

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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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