Liberty Media acquires MotoGP in $4.2bn deal

Source: MotoGP

Formula 1 owner Liberty Media has announced it acquired Dorna Sports, the exclusive commercial rights holder to the MotoGP World Championship, in a $4.2 billion deal. 

The deal details Liberty Media will acquire approximately 86% of the motorsport series, with Dorna Sports retaining approximately 14% of their equity in the business.

Dorna Sports will remain as an independently run company in Madrid, Spain attributed to Liberty Media’s Formula One Group tracking stock. Carmelo Ezpeleta, who has been CEO of Dorna Sports since 1994, will remain in his position and continue to run the business with his management team.

The acquisition also includes MotoGP feeder series Moto2 and Moto3, the FIM Enel MotoE World Championship, the MOTUL FIM Superbike World Championship and the new FIM Women’s Circuit Racing World Championship.

The transaction has an equity value of €3.5 billion, with MotoGP’s existing debt balance expected to remain in place after close, said the company.

“We are thrilled to expand our portfolio of leading live sports and entertainment assets with the acquisition of MotoGP,” said Greg Maffei, Liberty Media prresident and CEO. “MotoGP is a global league with a loyal, enthusiastic fan base, captivating racing and a highly cash flow generative financial profile. Carmelo and his management team have built a great sporting spectacle that we can expand to a wider global audience. The business has significant upside, and we intend to grow the sport for MotoGP fans, teams, commercial partners and our shareholders.”

“This is the perfect next step in the evolution of MotoGP, and we are excited for what this milestone brings to Dorna, the MotoGP paddock and racing fans,” said Carmelo Ezpeleta, CEO of Dorna. “We are proud of the global sport we’ve grown, and this transaction is a testament to the value of the sport today and its growth potential. Liberty has an incredible track record in developing sports assets and we could not wish for a better partner to expand MotoGP’s fanbase around the world.”

Liberty Media bought F1 from Bernie Ecclestone in 2017 in a US $8 billion transaction. The acquisition is expected to be completed by year-end 2024 and is subject to the receipt of clearances and approvals by competition and foreign investment law authorities in various jurisdictions.