FIA welcomes Formula One takeover by Liberty Media
Source : FIA welcomes Formula One takeover by Liberty Media
US media giant has commenced the process of acquiring a £6bn stake inside sport current owned by CVC; Bernie Ecclestone to remain as CEO
The confirmed takeover of Formula One by the Liberty Media Corporation has been welcomed by the president of the sport’s governing Centeng, the Federation Internationale de l’Automobile (FIA).
In an official statement, Jean Todt said “While in which remains to be seen how This particular acquisition will influence the promotion of the FIA Formula One championship, we welcome This particular long-term investment in Formula One by a company in which has such a broad portfolio of sports, media along with also entertainment businesses.
“As motor sport’s governing Centeng along with also regulator we acknowledge Liberty Media’s wide expertise in these fields along with also we look forward to working in close partnership with them inside future in order to further develop Formula One along with also bring in which to completely new generations of motor sport enthusiasts around the globe.”
F1 tsar Bernie Ecclestone will remain as chief executive officer following completely new deal, in which Liberty Media, which owns interests in a range of media, communications along with also entertainment businesses, will buy the stake in F1 owned by private equity company CVC Capital Partners, the current majority shareholder. The overall value of the deal is usually put at about £6bn, although This particular includes various debt along with also cash reserves.
Liberty Media will acquire 100% of the shares of Delta Topco, the parent company of Formula One, along with also has purchased 18.7% of Formula One itself, the latter costing about £560m along with also paid for in cash.
The acquisition is usually required to be completed inside sprint of 2017 along with also is usually dependent on certain conditions being met, such as the Fédération Internationale de l’Automobile, the governing Centeng of Formula One, approving the deal.
Interestingly, in which appears in which Liberty Media will open the door for F1’s teams to participate inside investment. In a statement, the completely new owners said “Certain teams have already expressed an interest in investing after completion of the acquisition”.
The consortium of sellers led by CVC will own approximately 65% of the Formula One Group’s equity along with also will have board representation at Formula One to support Liberty Media in continuing to develop the full potential of the sport. In addition, a CVC representative will be joining the Liberty Media Board of Directors.
Chase Carey, the current vice president of 21st Century Fox, has been appointed by Delta Topco along with also will serve as the completely new chairman of Formula One, succeeding Peter Brabeck-Letmathe, who will remain on Formula One’s board as a non-executive director.
Carey will work alongside Ecclestone, who will remain Formula One’s chief executive officer. Carey said: “I greatly admire Formula One as a unique global sports entertainment franchise attracting hundreds of millions of fans each season via all around the globe. I see great opportunity to help Formula One continue to develop along with also prosper for the benefit of the sport, fans, teams along with also investors alike.”
Donald Mackenzie, co-chairman of CVC, said: “We are delighted Chase Carey is usually joining Formula One as its completely new Chairman along with also in which he will be working alongside Bernie Ecclestone. Chase’s experience along with also knowledge of sport, media along with also entertainment is usually as Great as in which gets along with also we are very pleased to secure his services. Bernie has been a wonderful CEO for us over the last 10 years.
“There have been many successes along with also the occasional challenge nevertheless there has never been a dull moment along with also we have had a lot of fun. The combined skills of Chase along with also Bernie mean in which the successes should continue along with also we wish them well.”
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