Liberty Media has announced that it will sell an $825 million stake in Formula 1 to finance the purchase of MotoGP.
In April, it was announced that Liberty would acquire 86% of Dorna Sports, the Spanish company that has owned MotoGP since 1992.
The deal was valued at $4.2 billion, with the remaining share remaining with MotoGP management.
By selling over 10 million shares at a price of $77.50 per share, Liberty will now receive the proceeds it needs to complete the Dorna deal – but some of the proceeds will also be used for corporate purposes, including debt repayment.
A statement from Liberty Media confirming the share sale on Thursday said: “Liberty Media Corporation today announced that it has priced its previously announced public offering of 10,650,000 shares of its Series C Liberty Formula One Common Stock (“FWONK”) at a public offering price of $77.50 per share. Liberty Media also granted the underwriter of the offering an option to purchase up to an additional 1,597,500 shares of FWONK.
“The offering is expected to close on August 22, 2024, subject to the satisfaction of customary closing conditions, and is expected to raise gross proceeds to Liberty Media of approximately $825,375,000, before deducting underwriter discounts and estimated offering expenses to be paid by Liberty Media.
“Liberty Media intends to exercise its option to deliver additional cash in lieu of FWONK Shares as part of the previously announced proposed acquisition (the “Acquisition”) of Dorna Sports, SL, such that all consideration paid will be in cash and no FWONK Shares will be issued to the Sellers.”
Confirmation of the Dorna deal took longer than both parties would have liked, considering they had agreed on the terms for some time and had originally planned to announce the news before the start of the 2024 MotoGP season in March.
Marc Marquez, Gresini Racing, Carmelo Ezpeleta, CEO Dorna Sports
Photo by: Gold and Goose / Motorsport Images
Liberty could not fend off interest from companies such as Qatar Sports Investments, the country’s sovereign wealth fund, and TKO, the owner of Ultimate Fighting Championship and World Wrestling Entertainment, to add MotoGP to their portfolio.
“We are delighted to expand our portfolio of leading live sports and entertainment properties with the acquisition of MotoGP,” said Greg Maffei, President and CEO of Liberty Media, at the time the deal was announced.
“MotoGP is a global league with a loyal, enthusiastic fan base, compelling racing and a highly cash-generating financial profile. Carmelo (Ezpeleta, Dorna CEO) and his management team have built a great sporting spectacle that we can bring to a wider global audience.
“The business has significant potential and we intend to grow the sport for MotoGP fans, teams, commercial partners and our shareholders.”
Since taking over Formula 1 in 2016, Liberty has witnessed a boom period for the series, with interest reaching historic highs and value and revenue streams increasing.
Liberty hopes for similar success in MotoGP, where Ezpeleta and his son Carlos (sports director) will stay from the start.
