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Announced in April, Liberty Media intends to acquire Dorna, the commercial rights holder of MotoGP, in a deal worth AUD $6.9 billion (€4.2 billion).
That is contingent on regulatory approval in several markets, as it would see the American organisation control the world’s leading motorsport competitions on both two and four wheels.
Previously, ownership of both championships was not permitted by the European Commission, with CVC Capital forced to relinquish its interest in MotoGP in 2006 after it acquired F1.
Nonetheless, Liberty Media president and CEO Greg Maffei has spoken confidently of being able to complete the transaction, noting the changes in the media landscape over the past two decades.
Under Liberty’s structure, MotoGP would fall into the Formula One Group, currently headed by CEO Stefano Domenicali.
Maffei has stressed that MotoGP would operate independently of F1, with Liberty looking only to leverage expertise from F1 rather than treat the two organisations as a bundle.
“We are going to not treat these as a bundle or try to bring them together in the market,” Maffei said back in April.
“These are both separate properties. The things that we are bringing to the table here are not in any way leveraging the two.
“I think it’s pattern recognition and leveraging some of the learnings we’ve had from F1, and some of the opportunity we see to expose MotoGP, not in any way to leverage the two.”
It was a point reinforced by Liberty Media’s chief legal officer, Renee Wilm, who is also CEO of the Las Vegas Grand Prix and thought by some as a potential successor to Domenicali.
“The CVC decision, which is almost 20 years old, was never really followed up on in terms of any kind of in-depth investigation or appeal process – they chose to just quickly close and move on,” she said in April.
“So I think when you factor in that we are going to engage very quickly with the regulators, making all the points that Greg just very clearly articulated, and also just noting the changes in the media landscape over the last 20 years, we’re pretty confident we can get this done quickly and get the transaction cleared.
“We will be filing with the EU. We’ll also be filing with UK, Brazil, and Australia for anti-trust clearance.
“Secondarily, we will be making an FDI (foreign direct investment) filing for Spain and Italy, thinking those should be done pretty quickly and the anti-trust clearance should be obtained by the end of the year.”
Earlier this month, Wilm reduced her stock position in Formula 1, shedding just over USD $2 million worth of FWONK stock (25,475 shares in total).
On the same day, she acquired 8500 shares at USD $42.06 via options dating back to September 2022 and 2023 at a cost of $357,510, but with a market value of $669,545.
Despite the assurances from key Liberty figures, Alejandro Agag maintains concerns.
Agag is the co-founder and chair of Formula E and the founder of Extreme E and the E1 powerboat competition.
In the late 1990s and early 2000s, he served as a member of the European Parliament, where he was part of the Economic and Monetary Affairs Commission, with a focus on antitrust policy.
The Spaniard subsequently held an interest in a company called Stacourt Ltd with Flavio Briatore, which acquired the F1 television rights for Spain on a seven-year deal in 2002.
Therefore, his comments regarding EU interest in the MotoGP acquisition carry weight not only for his business position but also for his political experience.
“From the point of view of competition law, I think there are significant challenges,” Agag told the Financial Times of the deal.
“The leverage that this merger will give the resulting entity in terms of negotiating with broadcasters will be significant and I think the European Commission will look very carefully at this deal.”
While not stating that the acquisition should be stopped, the Spaniard specifically noted the need for “proper remedies to guarantee fairness in the market.”
According to the Financial Times, Agag’s comments were his personal opinion and not that of Formula E, which is 65 percent owned by Liberty Global—a separate organisation from Liberty Media, though John Malone chairs both.
Speaking last month, Maffei stated that the “transaction is progressing well,” and that filings were on track.
“We’ve received foreign investment control clearance in both jurisdictions needed, Italy and Spain, and we recently received merger clearance in Brazil and Australia,” he added.
“We continue to expect the transaction to close by year-end.”
Liberty Media recently concluded a revenue-raising round as part of the MotoGP acquisition, raising AUD $1.75 billion (USD $1.2 billion) with a view to completing the transaction with cash rather than options.
The MotoGP acquisition is taking place as the United States Department of Justice investigates antitrust concerns surrounding F1’s refusal to admit Andretti Global onto the grid.
It is not the only such action involving Liberty Media at present.
The DOJ, along with 30 state and district attorney generals, has filed a civil antitrust lawsuit against Live Nation, which is 30.09 percent owned by Liberty Media and chaired by Maffei.
Meanwhile, last week, F1’s long-time head of legal, Sacha Woodward Hill, departed the organisation, officially seeking new opportunities after 28 years though the timing raised eyebrows.
