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Liberty Media Buys Formula 1 for $8 Bn, Initial Stake of 18.7% to Grow to 100%

After Bernie Ecclestone had tried to fool F1 fans into believing that the highest class of single-seat auto racing is definitely not for sale, guess what? Yet again, the octogenarian head honcho has proven for the millionth time that he’s a bad bluff. Yup, the rumors were right: Liberty Media has agreed to buy Formula 1.
Formula 1 acquired by Liberty Media 6 photos
Photo: Liberty Media
Liberty Media logoJohn C. MaloneChase CareyGregory B. MaffeiLiberty Media acquired Formula 1
This information comes courtesy of the American mass media company, which is controlled by a billionaire who goes by the name of John C. Malone. The former chief executive of Tele-Communications Inc., Malone is worth $6.5 billion and, in business circles, he's called Darth Vader for obvious reasons.

The Chairman of Liberty Media chose Chase Carey, gentlemen who’s rocking a bushy mustache, for the role of Chairman of Formula 1. Carey succeeds Peter Brabeck-Letmathe, a gentleman who now fills the role of non-executive director of the board. "I would like to welcome Liberty Media and Chase Carey to Formula One and I look forward to working with them,” declared Bernie Ecclestone, who remains the chief executive clown officer of Formula 1.

I’m afraid you’ve heard that right. Bernie still is the big kahuna of the king motorsport. He’ll fulfill this seat for at least another three years because that’s what Liberty Media wants: a man who, for better or worse, has led Formula 1 since dinosaurs were still around, scaring mammals and stuff.

Now the time has come to talk about money. According to Liberty Media, the agreement to acquire Formula 1 is worth $8 billion, as in the enterprise value of F1. At the time of writing this piece, Liberty Media Corporation has acquired an initial stake of 18.7%, entirely in cash. Soon enough, the stake will rise to 100% of Delta Topco, the parent company of F1. In broader terms, that means Liberty Media will fully control the reins of the Formula 1 Group.

These said, I’ve left the best bit of news for last. Here’s what attracted my attention the most on this acquisition: “The teams will be given the opportunity to participate in the investment in Formula 1, and the detailed terms of that investment will be agreed in due course. Certain teams have already expressed an interest in investing after completion of the acquisition.”

For most Formula 1 fans, that’s the best bit of news we could’ve ever wished for. The teams have expressed interest in buying Formula 1, little by little, because the works and privateer teams can actually change the sport for the better. That’s if, eventually, they buy a majority stake in the Formula 1 Group.

For more info on the agreement, hit the following button for the release.
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About the author: Mircea Panait
Mircea Panait profile photo

After a 1:43 scale model of a Ferrari 250 GTO sparked Mircea's interest for cars when he was a kid, an early internship at Top Gear sealed his career path. He's most interested in muscle cars and American trucks, but he takes a passing interest in quirky kei cars as well.
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