F1 owners gain greenlight for huge new $4.8 billion motorsport deal

Liberty Media, the company that owns the commercial rights to Formula 1, has received approval to acquire MotoGP in a $4.8 billion deal.

The American company will take on an 86 per cent stake in Dorna, the company which holds the commercial rights to MotoGP, following an intensive investigation by the European Commission.

F1 owners obtain key approval to purchase MotoGP in $4.8 billion deal

Approval of the deal was expected, as PlanetF1.com reported last week, and marks a significant development for global motorsport as the world’s two premier categories will share common ownership for the first time.

In 2006, when CVC purchased the commercial rights to Formula 1, it was forced to divest its interest in MotoGP to satisfy European antitrust considerations.

Those concerns were paramount after Liberty Media announced its intent to acquire the commercial rights to the two-wheeled world championship in April last year.

In addition to foreign investment clearance in a number of markets, a European Commission investigation was triggered by virtue of the players involved in the transaction.

Liberty Media had initially hoped the transaction would complete before the end of next year.

That timeline was pushed out when the merger progressed to a Phase II investigation last December, where a more intensive analysis took place.

Initially set to conclude in May, a 20-working day extension was granted in addition to a pause in the timer as officials waited for additional information to be supplied.

The delay introduced by the Phase II investigation forced Liberty Media to extend its long-stop date at a cost of $145 million in penalties.

However, the European Commission has now approved the acquisition granted Liberty Media unconditional approval to acquire an 86 per cent stake in Dorna.

More from the motorsport world on PlanetF1.com

? Why Renault boss’ shock exit opens old wounds for Alpine F1 team

? Huge new pit building unveiled as historic venue gets major $70 million upgrade

“Today’s approval from the European Commission marks the final condition to closing Liberty’s acquisition of MotoGP,” said Derek Chang, Liberty Media’s president and CEO.

“We are thrilled to officially commence Liberty’s partnership with Carmelo and his excellent management team.

“MotoGP is a highly attractive premium sports asset with incredible racing, a passionate fanbase and a strong cash flow profile.

“We believe the sport and brand have significant growth potential, which we will look to realise through deepening the connection with the core fan base and expanding to a wider global audience.”

Carmelo Ezpeleta, CEO of Dorna, added: “We are very happy that the European Commission has approved the transaction.

“This is an important milestone confirming the even brighter future that lies ahead for MotoGP.

“MotoGP is one of the most thrilling sports on earth, and we look forward to accelerating the sport’s growth and expanding its reach to even more fans around the world.

“Liberty is the best possible partner for our sport and the entire MotoGP community, and we are excited to create even greater value for our fans, commercial partners and everyone competing.”

Unconditional approval means the European Commission is satisfied that consumers will not be adversely affected by the concentration of the market under Liberty’s ownership.

Those concerns surrounded the awarding of television contracts, event scheduling, signage and commercial opportunities with the respective championships, and more, with concerns they would all impact negatively on European consumers.

The European Commission noted as much in progressing the acquisition to a Phase II investigation, stating at the time that the deal “raises serious doubts as to its compatibility with the internal market.”

With approval now in place, Liberty Media expects the deal to close on July 3, beyond which it will hold a controlling interest in MotoGP.

Read next: Christian Horner: F1’s pantomime villain reveals how the ‘Piranha Club’ has evolved