Announced last April, Liberty Media is looking to acquire an 86 percent stake in Dorna, the organisation that holds the commercial rights to MotoGP.
It’s a transaction worth almost AUD $7 billion, and Liberty would own the rights to the premier classes of motorsport on two and four wheels.
Liberty acquired Formula 1 in 2017 for AUD $10.4 billion and its value has surged to more than AUD $40 billion in the eight years since.
However, its ownership of F1’s commercial rights has proved a stumbling block for its MotoGP aspirations as, on top of the deal requiring regulatory approval (largely for foreign investment), it also needs clearance from the European Commission.
There were calls for an EU investigation last October, which Liberty Media subsequently confirmed had begun a month later before progressing to a Phase II investigation in December that has put the deal on hold.
The European Commission was obliged to assess the proposed sale due to the size of the players involved and the potential impact on the European market, a process which has identified areas of concern.
“By acquiring Dorna Sports, Liberty Media would hold the commercial rights to two of the most popular motorsports in Europe: Formula 1 and MotoGP,” noted Teresa Ribera, executive vice-president of the European Commission for clean, just and competitive transition, and commissioner for competitiveness.
“We need to more carefully assess whether this acquisition could negatively affect European broadcasters, for example in terms of increased license fees, and ultimately European consumers and motorsports fans through higher prices.
“We will at the same time openly consider any substantiated claims by the parties about possible benefits this acquisition might bring, for fans, the industry and for consumers.”
There are three possible outcomes from the Phase II investigation: the deal could be unconditionally cleared, approved subject to remedies, or prohibited “if no adequate remedies to the competition concerns have been proposed by the merging parties.”
That process remains ongoing, with a resolution not expected until May.
“We are working towards the close of the Dorna acquisition,” confirmed Derek Chang, Liberty Media’s new CEO, during an investor call last week.
“The Phase II regulatory process is progressing, which is a more in-depth review by the European Commission, and not uncommon in major transaction, transactions like these.
“We extended the long stop date for regulatory clearance to June 30, 2025 and are working constructively with the regulators towards approval.”
As Speedcafe revealed, the long stop extension had a hefty AUD $210 million price tag due to penalties stated in the original sale documents.
That figure comes in addition to the agreed sale price and does not reduce or offset that consideration; it purely opens the window for the transaction to complete until June 30
The 2025 MotoGP season kicked off last weekend in Thailand, a race won by Ducati’s Marc Marquez.
Discussion about this post