$8 Billion Takeover Of Formula 1 Begins, But Bernie Isn’t Budging
American Media giant Liberty Media has begun a takeover of Formula 1 valued at $8billion (£6billion) in total, with the first step being a 18.7 per cent stake for $746million.
The statement released on Wednesday confirmed Liberty Media has agreed to buy F1 from a consortium of sellers led by CVC Capital Partners, the series’ majority shareholder.
The initial step is a short-term goal, but in the longer term Liberty Media will buy 100 per cent of the shares of F1’s parent company, Delta Topco, subject to the satisfaction of certain conditions.
Chase Carey, vice-chairman of 21st Century Fox, will join as F1 chairman. A big piece of news is that long-time F1 supremo Bernie Ecclestone will remain as CEO, although there has been no confirmation on how long this will be for.
The deal will see Liberty invest $4.4billion (£3.3billion) in total, assuming $4.1billion of F1’s debt. The deal is scheduled to be completed in the first quarter of 2017 and will have an expected value of $8billion.
It’s all rather complicated, as you’d expect from a takeover of one of the biggest sports series in the world, but appears to be a positive one for F1.
CVC has come under criticism since it took over a majority stake of F1 in 2006 for focusing on its own investments, rather than helping to push the series forward.
Liberty Media owns stakes in the Atlanta Braves baseball team and SiriusXM Radio Inc, as well as a wide range of media and entertainment companies.
The company’s president and chief executive officer, Greg Maffei, said he hopes Liberty Media will be “good stewards” for F1 and “benefit fans, teams and our shareholders”.
It’s expected that this new ownership could open up F1 to new digital marks, social media and expansion of the series – perhaps with new races and venues joining the calendar.
There will also be the chance for teams to invest in F1 itself and the announcement said some are already interested in doing so.
For anyone that wants to read up about all of the minor, intricate details of the deal – take a look at the full statement here.
So, what do you think about the news? Good or bad for F1? Let us know below!
Comments
8,000,000,000$?
Isn’t that how much one team spend annually?
That is the begining.
I think the total price of F1 is
about $25 billion.
I think Red Bull annual budget was around $700 million, but definitely nowhere near $8 billion
I Just hope that the news chances comes for the best of the sport.
First of all, I want better exhaust sound….wayyyy better. If Pagani can make beautiful exhaust system, F1 can too. Don’t make excuses.
Secondly, give some attention to the exterior design. Yes you can make more aesthetic design without compromising aerodynamics and driver’s safety (Ferrari F1 concept car is a very good example).
On third, consider adding a daylight option in the front wing. Before abusing me, take a look at Regera’s daylight option. How beautiful it is! Chiron & new NSX’s daylights are other good creations. It’s not a crime to fit a narrow LED light on the front wing, is it?
Fourth, from the perspective of performance, increase the point gap between Pole and 2nd position. We are tired of seeing only two drivers rapidly holding 1st two positions. Damn! When did it become Formula Mercedes?!
Fifth, Don’t give an odd penalty for doing burnout and not parking at the podium after finishing the race. The race is for audiences, not for high school principal. Ok?
In other words your comment dosen’t make any good points in my opinion
I’m with transit supervan, none of these points make any sense. Sorry
Well, it became Formula Mercedes right after it was Formula Red Bull, and Formula Brawn GP, and Formula Ferrari…
Yeah most of ur points are sh*t to be honest.
It’s going to end up with one of those voodoo style things where when Bernie eventually dies they mummify him and take him to races and conferences and use omens as a way of communicating with him.
“A groundhog just crossed the track in Canada, Bernie’s trying to tell us we must enforce more track limit restrictions”
This is by far the most accurate description of F1’s future I have ever read.
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I heard somewhere Bernie is staying 3 more years
Bernie will stay until his last breath and heartbeat 😉
Here is my offer:
:)
At least no one yet put the “I have $3” meme
I’m all for the Americans taking over F1. They know better than anyone how to bring motorsport to the masses as a true spectator sport.
I’m hoping for an Indycar-like atmosphere with cheaper tickets and the chance to get up close and personal with the drivers.
F1 is in dire need of such a reality check.
But all right hand turns will be banned…
But on a serious note, it would be great if the tickets are cheaper, I would definitely buy tickets for the races at Spa, Hockenheim, maybe Silverstone depending on the flight prices and maybe even a race that’s further away once every couple of years.
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I sure hope that they will replace the farty v6 noise for that glorious v8 growl
Engine rules belongs to FIA not FOM.
America taking over F1? They’ll end up just turning left soon
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