Formula One owner Liberty snaps up MotoGP in £3bn Dorna deal
F1 owner Liberty Media will takeover the motorcycle racing league MotoGP via a £3bn deal with Bridgepoint and Canada Pension Plan Investment Board.
Formula One owner Liberty Media will takeover the motorcycle racing league MotoGP, as part of €3.5bn (£3bn) deal to buy its exclusive rights holder and parent company Dorna, it has been announced.
The agreement will see Dorna Sports remain an independently run company. Liberty will acquire an 86 per cent stake in the firm, with Dorna management retaining around 14 per cent of their equity in the business.
The deal represents an enterprise value of €4.2bn (£3.5bn) and an equity value of €3.5bn, according to a statement issued by Liberty Media.
It represents a big return for the London-based investment group Bridgepoint, which has been an investor in MotoGP since 2006. The Canada Pension Plan Investment Board (CPPIB) will also sell off its share of the business in the deal.
“We are thrilled to expand our portfolio of leading live sports and entertainment assets with the acquisition of MotoGP,” Greg Maffei, president and chief executive, said.
“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.”
Speculation over the deal, which is one of the most significant in the motorsport industry in years, had grown in recent weeks. Sky News first reported Liberty was in talks to buy Dorna for €4bn in early March.
Carmelo Ezpeleta, chief executive of Dorna, said the transaction was a “testament to the value of the sport today and its growth potential.
“Liberty Media 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.”
The acquisition is expected to be completed by the end of 2024 and is subject to clearance by competition and legal authorities in various jurisdictions.
It could prompt some scrutiny from European regulators. CVC Capital Partners, who sold F1 to Liberty in 2016 for £6.3bn, had received clearance from the European Commission to buy it in 2006, on condition Dorna was sold.
William Jackson, chairman of Bridgepoint Group plc and of Dorna Sports S.L. said: “We’re proud to have partnered with Dorna and its management team for the past 18 years during which time Moto GP has become one of the true global sports brands and enjoys huge success.”
