Liberty Media – who also owns F1 – have stepped in to buy MotoGP from Dorna Sports, S.L., as the Spanish company gives up its stake.
As was being reported for weeks, Liberty Media has confirmed the acquisition of MotoGP from Dorna Sports after an agreement between the two companies, which is likely to be completed by the end of the 2024 season.
It does depend on the approvals from competition and foreign investment laws in various jurisdictions after notes of European law not allowing a company to run two big competitive companies and or sporting competition at one go.
For now, Liberty Media and Dorna Sports have come to an agreement to take 86% equity, with the remaining 14% to stay with the MotoGP management. The current CEO Carmelo Ezpeleta will continue to run the business from the headquarter in Madrid.
As per the transaction, MotoGP is valued at €4.2 billion, with the equity value being €3.5 billion. The existing debt is to remain as it, even at the closing of the deal. The equity consideration will comprise of ‘approximately 65% cash, 21% in shares of Series C Liberty Formula One common stock’ and 14% of retained MotoGP management equity.
“We are thrilled to expand our portfolio of leading live sports and entertainment assets with the acquisition of MotoGP,” said Greg Maffei, Liberty Media President 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.”
Meanwhile, Ezpeleta added: “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. 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.”
Additional note by Liberty Media: “Goldman Sachs & Co. LLC is acting as financial advisor to Liberty Media and is providing committed debt financing for the transaction, and O’Melveny & Myers LLP is acting as legal counsel. Moelis & Company LLC is acting as financial advisor to Dorna, and Latham & Watkins LLP is acting as legal counsel.”
[Note: The story is as per press release]
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