Liberty Media’s €4 billion ($4.3 billion) acquisition of Dorna Sports could be announced as soon as Monday, Sky News reported on Sunday, citing people familiar with the matter.
The deal will bring together two racing organizations, Formula One (NASDAQ:FWONA) for single-seat cars and MotoGP for motorcycles, under the same ownership.
Greg Maffei, president and chief executive of Liberty Media, is expected to announce the deal in Madrid on Monday, after months of talks with Bridgepoint, the private-equity firm that owns about 40% of Dorna. The Canada Pension Plan Investment Board also has a significant interest in the company, while the remaining shares own held by Dorna’s management.
Bringing Formula One and Moto GP under common ownership would give Liberty Media a way to develop cross-promote races and reduce administrative costs. Liberty Media, founded by John Malone in 1991, is expected to replicate the success of Formula One in the United States with its control of Dorna, Sky News reported.
A possible deal may face regulatory scrutiny from competition authorities. Private-equity firm CVC Capital Partners in 2006 was forced to sell MotoGP to receive approval for an acquisition of Formula One.
Liberty Media in 2017 acquired Formula One from CVC Capital for £6.4 billion ($8 billion).
Liberty’s purchase of Dorna Sports may be announced Monday, Sky reports
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