Liberty Media Buying Formula One

ENGLEWOOD/LONDON: John Malone’s Liberty Media is acquiring the Formula One global motorsports business, with Chase Carey to serve as chairman.

Carey was appointed by Delta Topco, the parent company of Formula One, to serve as the new chairman of Formula One, succeeding Peter Brabeck-Letmathe. Brabeck-Letmathe will remain on Formula One’s board as a non-executive director. Bernie Ecclestone will remain Formula One’s CEO.

Liberty is buying the business from a consortium of sellers led by CVC. The consideration comprises cash and newly issued shares in the Liberty Media Group tracking stock (LMCK) and a debt instrument exchangeable into shares of LMCK. The transaction price represents an enterprise value for Formula One of $8 billion and an equity value of $4.4 billion.

Currently, Liberty Media has completed the acquisition of an 18.7 percent minority stake in Formula One for $746 million, funded entirely in cash. Prior to completion, CVC Funds will continue to be the controlling shareholder of Formula One. After completion of the acquisition, Liberty Media will own Formula One and it will be attributed to the Liberty Media Group, which will be renamed the Formula One Group.

Greg Maffei, the president and CEO of Liberty Media, said: “We are excited to become part of Formula One. We think our long-term perspective and expertise with media and sports assets will allow us to be good stewards of Formula One and benefit fans, teams and our shareholders. We look forward to working closely with Chase Carey and Bernie Ecclestone to support the next phase of growth for this hugely popular global sport.”

Carey commented: “I am thrilled to take up the role of Chairman of Formula One and have the opportunity to work alongside Bernie Ecclestone, CVC and the Liberty Media team. I greatly admire Formula One as a unique global sports entertainment franchise attracting hundreds of millions of fans each season from all around the world. I see great opportunity to help Formula One continue to develop and prosper for the benefit of the sport, fans, teams and investors alike.”

Ecclestone added: “I would like to welcome Liberty Media and Chase Carey to Formula One and I look forward to working with them.”

Donald Mackenzie, co-chairman of CVC, commented: “We are delighted Chase Carey is joining Formula One as its new chairman and that he will be working alongside Bernie Ecclestone. Chase’s experience and knowledge of sport, media and entertainment is as good as it gets and we are very pleased to secure his services. Bernie has been a wonderful CEO for us over the last 10 years. There have been many successes and the occasional challenge but there has never been a dull moment and we have had a lot of fun. The combined skills of Chase and Bernie mean that the successes should continue and we wish them well. We would like to thank Peter Brabeck-Letmathe for his outstanding contribution during his tenure as chairman. His leadership has served the company well, and we are pleased that he will remain on the board as a non-executive director.”