Liberty Media, the company that holds the rights to Formula 1, has officially announced the purchase of MotoGP. The news was in the air, and today, this step became official, with LM purchasing Dorna for a fee of 4.2 billion euros.
LIBERTY MEDIA ALSO BUYS MOTOGP! CARMELO EZPELETA REMAINS CEO
The two main pieces of news issued in the press release regarding the purchase of Dorna by Liberty Media concern the officialization of the price, i.e. 4.2 billion euros, but above all, the fact that Carmelo Ezpeleta will remain at the top of the top series of two-wheeled motorsport, continuing in his work.
Liberty Media acquires 86% of the shares of MotoGP, with the remaining 14% remaining with the management of MotoGP itself. The enterprise value of MotoGP is estimated at 4.2 billion euros, while the net worth is 3.5 billion euros. The total sum will be split 65% cash – including debt – and 21% Series C ordinary shares of Liberty Media Formula 1, with a unilateral provision for Liberty Media to convert this percentage into further cash payments.
MotoGP retains the remaining 14%. The purchase is expected to close by the end of this year and is dependent on the relevant competition and foreign investment authorities in various jurisdictions.
The first words reported are those of Greg Maffei, Liberty Media President and CEO:
“We are thrilled to expand our portfolio of leading sports and live entertainment assets with the acquisition of MotoGP which is a global league with a loyal fan base and enthusiastic, attractive racing and a financial profile that generates important cash flows. Carmelo and his management team have built a great sports spectacle that we can expand to a broader global audience. The business has significant benefits and we intend to grow the sport for MotoGP fans, teams, commercial partners and our shareholders.”
Carmelo Ezpeleta, CEO of Dorna, also commented on the news of this change of ownership:
This is the perfect next step in the evolution of MotoGP and we are excited about what this milestone will bring to Dorna, the MotoGP paddock and fans of racing. We are proud of the global sport we have grown and this transaction is a testament to the value of sport today and its growth potential. Liberty has an incredible track record in developing sports assets, and we couldn’t ask for a better partner to expand the MotoGP fan base around the world.”
