VALENCIA (EP). The American media and entertainment conglomerate Liberty Media, owner of the rights to Formula 1, has reached an agreement with Bridgepoint and the Canada Pension Plan Investment Board to acquire the Spanish company Dorna Sports, exclusive holder of the commercial rights to the World Championship. MotoGP, with a valuation of 4.2 billion euros.
Under the deal, which will be completed by the end of 2024, Liberty Media will acquire 86% of MotoGP and MotoGP management will retain approximately 14% of its equity in the business.
The agreed transaction reflects an enterprise value for MotoGP of €4.2 billion and an equity value of €3.5 billion, with MotoGP’s existing debt balance expected to be maintained after closing.
The equity consideration to the sellers is expected to be comprised of approximately 65% cash, 21% Liberty Formula One C Series (FWONK) common shares and 14% MotoGP retained management capital.
The cash consideration will be funded with a combination of cash and debt, subject to market conditions, while the consideration for FWONK shares will be set based on a 20-day volume-weighted average price prior to the closing of the transaction.
In this regard, Liberty Media has the option, in its sole discretion, to provide additional cash in lieu of FWONK common stock.
Within the framework of the operation, MotoGP will be attributed to the monitoring stock of the Liberty Media Formula One Group, which has highlighted the growth of MotoGP, which will host 21 races in 17 countries in the 2024 season.
On the other hand, the company has confirmed that Carmelo EzpeletaCEO of Dorna since 1994, will continue to head the Madrid-based business.
“MotoGP is a global league with a loyal and enthusiastic fan base, captivating racing and a financial profile that generates great cash flow,” said Greg Maffei, president and CEO of Liberty Media, for whom the business has significant advantages. .
“This is the perfect next step in the evolution of MotoGP, and we are excited about what this milestone brings to Dorna, the MotoGP paddock and racing fans,” said Carmelo Ezpeleta, CEO of Dorna. “This transaction is a testament to the value of today’s sport and its growth potential,” he added.
Goldman Sachs has acted as financial advisor to Liberty Media and is providing committed debt financing for the transaction, while O’Melveny & Myers is acting as legal advisor to the company led by the tycoon. John C. Malone. For its part, the firm Moelis & Company acts as financial advisor to Dorna and Latham & Watkins as legal advisor.
The acquisition is expected to be completed by the end of 2024 and is subject to receipt of clearances and approvals from competition and foreign investment regulators in various jurisdictions.
In 2006, the European Commission forced CVC to transfer its stake in Dorna to Bridgepoint as a condition for authorizing the 2005 acquisition by the fund of the company that then owned the rights to Formula 1. In 2016, a consortium of investors led by CVC reached an agreement to sell Formula 1 to Liberty Media.
