Liberty Media To Acquire Commercial Rightsholder Of MotoGP For Enterprise Value Of EUR 4.2 Bln

(RTTNews) - Formula 1 owner Liberty Media Corp. (FWONA, FWONK) announced Monday that it has entered into an agreement to acquire Spain's Dorna Sports, S.L., the exclusive commercial rights holder to the MotoGP World Championship, from British private investment company Bridgepoint Group plc and Canada Pension Plan Investment Board. MotoGP will be attributed to Liberty Media's Formula One Group tracking stock.

MotoGP is the pinnacle of motorcycle racing. The business benefits from an attractive financial profile with diversified and contracted revenue streams

The acquisition expands the portfolio of high-quality global sports assets with the world's leading motorcycle racing championship.

Liberty Media will acquire 86 percent of MotoGP with MotoGP management retaining approximately 14 percent of their equity in the business.

The transaction reflects an enterprise value for MotoGP of 4.2 billion euros and an equity value of 3.5 billion euros with the existing debt balance at MotoGP expected to remain in place after close.

The equity consideration to sellers is expected to be comprised of approximately 65 percent cash, 21 percent in shares of Series C Liberty Formula One common stock and 14 percent of retained MotoGP management equity.

The cash consideration will be funded with a mix of cash and debt, subject to market conditions. The stock consideration will be priced on a 20-day volume weighted average price prior to transaction close. Liberty Media retains an option at its sole discretion to deliver additional cash in lieu of the common stock.

The acquisition is expected to be completed by year-end 2024 and is subject to the receipt of clearances and approvals by competition and foreign investment law authorities in various jurisdictions.