US firm Liberty Media buying Formula One

LONDON (AP) — Formula One is being bought by Liberty Media, a US company that invests in entertainment and sports, for $4.4 billion.

Liberty Media Corp., which is controlled by 75-year-old tycoon John Malone, has ended years of uncertainty about the ownership of the auto racing series with Wednesday's deal.

There will be continuity, with Bernie Ecclestone remaining the chief executive officer of F1. But the 85-year-old Ecclestone will have to work under a new chairman: Chase Carey, the executive vice chairman of Rupert Murdoch's entertainment conglomerate 21st Century Fox.

Formula One has hundreds of millions of fans, and Carey said in a statement that he sees opportunity to develop it. In an interview, Ecclestone said he is optimistic Liberty has the resources, expertise and outlook to drive the growth of F1 — particularly in the United States.

Liberty said it has initially purchased a minority stake of 18.7 percent for $746 million.

A buyout is expected to be completed by March, 2017. F1's biggest current shareholder, investment fund CVC Capital Partners, and the other sellers will still own 65 percent of Formula One Group stock, and retain board representation. But CVC, which first invested in F1 in 2005, is ceding control of the sport to Malone's Liberty, which has all the voting shares.

The company says the deal values Formula One at $8 billion, including debt.