New era for Formula One as Liberty agrees to $8 billion takeover

Liberty Media group will pay a total equity price of $4.4 billion in cash, newly issued shares, and exchangeable debt to complete the deal, which gives Formula One an enterprise value of $8.0 billion.

The sport’s governing body, the FIA, noted in a statement that it was awaiting further details and its president, Jean Todt, said: “While it remains to be seen how this acquisition will influence the promotion of the FIA Formula One championship, we welcome this long-term investment in Formula One by a company that has such a broad portfolio of sports, media and entertainment businesses”. Formula One will remain based in London.

Liberty said it would keep Ecclestone, who built Formula One into a global operation over almost four decades, as chief executive, but also named 21st Century Fox vice chairman Chase Carey as the company’s new chairman. But CVC, which first invested in F1 in 2005, is ceding control of the sport to Malone’s Liberty, which has all the voting shares.

Liberty Media Corporation confirmed it has agreed to purchase a significant stake in Formula One motor racing as part of a deal that will ultimately lead to the full sale of the sports organisation.

Liberty Media will continue to build Formula One on the solid foundations laid down by Bernie Ecclestone after its takeover, according to the sport’s new chairman.

The transition is due to be overseen by F1 CEO Bernie Ecclestone, who told The Associated Press that he will retain his role as the sport enters a new era.

Ecclestone is optimistic Liberty has the resources, expertise and modern outlook to drive the growth of F1 – particularly in the United States.

The 85-year-old said: “I have been offered a contract to stay and help them”. “They have dealings with a lot of sponsors due to their TV networks and social media which we haven’t done (as much) in the past”.

At the time of the sale, CVC had a 35.5 per cent stake in F1, followed by US fund manager Waddell & Reed with slightly more than 20 per cent. Ecclestone has 5.3 per cent stake in F1 but his family Bambino Trust has a further 8.5 per cent, rounding up his involvement up to about 14 per cent.

Tali Arbel contributed from NY.