Liberty Media, owner of the Formula One Group since 2016 and responsible for managing the motorsport championship it derives its name from, has reached an agreement with Bridgepoint and CPP Investments (a Canadian pension fund) to acquire Spain's Dorna Sports, holder of the commercial rights to MotoGP. The transaction price represents an enterprise value of 4.2 billion euros.

By purchasing Dorna Sports, the US company has acquired the rights to two of the world's most important sporting competitions. Since its first season in 1949, the MotoGP World Championship has grown to 21 races in 17 countries this season.

Cash and shares
Under the agreement, Liberty Media will acquire 86% of MotoGP, while Dorna's management will retain the remaining 14%. The transaction reflects an enterprise value for MotoGP of 4.2 billion euros and an equity value of 3.5 billion euros. The purchaser expects to pay 65% of the equity consideration in cash and the other 21% in Series C Liberty Formula One ordinary shares.

The transaction is subject to approval by competition and foreign investment authorities in several jurisdictions. It is expected to be completed by the end of 2024. Based in Madrid, Dorna Sports, the sole owner of the commercial and television rights to MotoGP, will remain an independently-managed company. Its CEO since 1994, Carmelo Ezpeleta, will remain at the helm of the company.

Global audience
Liberty President and CEO Greg Maffei welcomes the expansion of its portfolio of leading live sports and entertainment assets with the acquisition of MotoGP. In his opinion, “MotoGP is a global league with a loyal and enthusiastic fan base, captivating racing and a financial profile that generates a high cash flow. Carmelo Ezpeleta and his management team have built a great sporting spectacle that we can expand to a wider global audience. The business has significant advantages, and we intend to grow the sport for fans, teams, commercial partners and our MotoGP shareholders.”

Ezpeleta, meanwhile, explained that “this is the perfect next step in the evolution of MotoGP, and we are excited about what this milestone brings to Dorna, the MotoGP paddock and the race fans”.

The Dorna CEO added, “We are proud of the global sport we have developed, and this transaction is a testament to the value of the sport today and its growth potential. Liberty has an incredible track record in developing sporting assets, and we couldn't wish for a better partner to expand the MotoGP fan base around the world.”

^{Photo: Dorna Sports}