CPPIB and partner sell motorcycle racing league
Formula One owner Liberty Media Corp. is buying the motorcycle racing league MotoGP World Championship from Bridgepoint Group PLC and Canada Pension Plan Investment Board as part of a US$3.8-billion deal.
Liberty Media is taking over Madrid-based MotoGP by buying its exclusive rights holder Dorna Sports with a combination of cash and shares of Series C Liberty Formula One common stock. The deal will bring one of the world's biggest motor-racing brands and MotoGP — often described as the two-wheeled equivalent to Formula One — under a single roof.
MotoGP is just the latest asset to be taken over by billionaire John Malone's sprawling Liberty Media empire that already includes a wide range of media, communications and entertainment businesses such as concert promoter Live Nation Entertainment Inc. Since buying F1 in 2016, Liberty Media has targeted key markets including the United States, attempted to grow the sport's popularity through digital streaming and struck gold with the show Drive to Survive.
The deal may draw scrutiny from antitrust regulators. The buyout firm CVC Capital Partners Ltd. was forced to put MotoGP up for sale nearly two decades ago to gain antitrust approval from European regulators
for its takeover of Formula One in 2005. MotoGP is planning to host 21 races across 17 countries in this year's season, according to the company statement.
Liberty said it's funding the deal with a mix of cash and debt and expects the transaction to close by the end of 2024. Dorna Sports chief executive Carmelo Ezpeleta will continue to run the business.
Liberty Media has plans to expand MotoGP's events to a “wider global audience,” chief executive Greg Maffei said in the company's statement Monday. “The business has significant upside, and we intend to grow the sport for MotoGP fans, teams, commercial partners and our shareholders,” he said.