Liberty Media is said to be in discussions to acquire the MotoGP
According to the Financial Times, the owner of Formula 1 is reportedly nearing a deal to buy Dorna, which organizes the MotoGP championship. Liberty's offer would value Dorna at over 4 billion euros, including debt.
The owner of Formula 1, Liberty Media, is reportedly in exclusive negotiations to acquire Dorna, the company that owns MotoGP for more than 4 billion euros, according to sources close to the matter cited by the Financial Times. If the deal is finalized, it would bring together two of the most prestigious racing series in the world, namely the premier categories of car and motorcycle sports.
The company Dorna Sports, based in Madrid , organizes various racing events, including MotoGP and the Superbike World Championship, in more than 20 countries. However, this potential transaction could be subject to regulatory review due to the dominant position it would give Liberty in the sector, and attract the attention of European competition regulators.
CVC Capital Partners private equity fund once owned both F1 and MotoGP, but was forced to sell the motorcycle series in 2006 as a condition to buy F1 after EU competition regulators raised concerns. CVC later sold F1 to Liberty in 2017 in a $8 billion deal.
A golden opportunity for Liberty Media
If this materializes, it would however mark a new step in Liberty’s ambitions in the field of motor sport, after its success with Formula 1. As with the latter, MotoGP generates its revenue through broadcasting rights, circuit fees, sponsorship, and the sale of derivative products.
Under Liberty’s leadership, F1 has emphasized social media promotion and collaborated with Netflix to produce the hit series “Drive to Survive,” which helped expand the fan base. With races in iconic cities like Miami and Las Vegas, Liberty expanded the calendar to a record-breaking 24 races this year.
Result: the operating profit of F1 increased by 64% to reach $392 million in 2023 compared to the previous year, while revenues soared to $3.2 billion from $2.5 billion. Dorna’s revenues reached €483 million in 2023. There is no doubt that the Liberty group wants to replicate with MotoGP what it has achieved with F1, giving it more prestige and a larger international audience.
For the record, Bridgepoint, a shareholder of Dorna for 18 years, holds approximately 40% of the company, which it acquired for an enterprise value of 550 million euros in 2006. The CPPIB acquired its 39% stake in Dorna from Bridgepoint in 2012.
According to the Financial Times, an agreement would be close to being concluded, but an official announcement could be postponed to next week. Stay tuned…
