Formula One takeover by Liberty Media confirmed in £6bn deal
Source : Formula One takeover by Liberty Media confirmed in £6bn deal
US media giant has started off the process of acquiring the stake from the sport current owned by CVC; Bernie Ecclestone to remain as CEO
The takeover of Formula One by the Liberty Media Corporation has been confirmed, along with F1 tsar Bernie Ecclestone will remain as chief executive officer for the foreseeable future.
Liberty Media, which owns interests in a range of media, communications along with entertainment businesses, has agreed to buy the stake in F1 owned by private equity company CVC Capital Partners, the current majority shareholder. The overall value of the deal will be put at about £6bn, although This specific includes various debt along with cash reserves.
Liberty Media will acquire 100% of the shares of Delta Topco, the parent company of Formula One, along with has purchased 18.7% of Formula One itself, the latter costing about £560m along with paid for in cash.
The acquisition will be anticipated to be completed from the sprint of 2017 along with will be dependent on certain conditions being met, such as the Fédération Internationale de l’Automobile, the governing Centeng of Formula One, approving the deal.
Interestingly, This specific appears that will Liberty Media will open the door for F1’s teams to participate from the investment. In a statement, the fresh 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 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 will serve as the fresh 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 by all around the earth. I see great opportunity to help Formula One continue to develop along with prosper for the benefit of the sport, fans, teams along with investors alike.”
Donald Mackenzie, co-chairman of CVC, said: “We are delighted Chase Carey will be joining Formula One as its fresh Chairman along with that will he will be working alongside Bernie Ecclestone. Chase’s experience along with knowledge of sport, media along with entertainment will be as Great as This specific gets along with 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 the occasional challenge although there has never been a dull moment along with we have had a lot of fun. The combined skills of Chase along with Bernie mean that will the successes should continue along with we wish them well.”
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