Liberty Media has confirmed that it is buying the Formula1 motor sports business for US$4.4 billion.
The deal gives F1 an enterprise value of US$8.0 and will see Liberty buy an initial minority stake of 18.7%, which it will up to 100% subject to antitrust and competition approvals in various countries.
Liberty is buying the business from a consortium of sellers, led by F1’s controlling shareholder CVC. This group will still own roughly 65% of F1’s equity and will have board representation.
On completion of the deal, Liberty Media Group will be renamed the Formula One Group.
In terms of management, F1 CEO Bernie Ecclestone will keep the same role, while 21st Century Fox vice-chairman, Chase Carey, has been appointed as the new Chairman of Formula One.
Carey succeeds Peter Brabeck-Letmathe, who will remain on Formula One’s board as a non-executive director.
“We are excited to become part of Formula One. We think our long-term perspective and expertise with media and sports assets will allow us to be good stewards of Formula One and benefit fans, teams and our shareholders,” said Liberty Media president and CEO, Greg Maffei.
Chase Carey said: “I am thrilled to take up the role of Chairman of Formula One and have the opportunity to work alongside Bernie Ecclestone, CVC, and the team.
“I see great opportunity to help Formula One continue to develop and prosper for the benefit of the sport, fans, teams and investors alike.”
Confirmation of the deal follows follows numerous media reports linking Liberty to F1.