The pinnacle of two-wheel racing – “MotoGP”, has been acquired by Liberty Media Corporation, from Dorna Sports. Since 1991, Dorna Sports was the sole commercial and television rights holder of the FIM MotoGP World Championship. Liberty Media Corporation has announced its agreement to acquire MotoGP. Since 1949, MotoGP has grown to more than 20 Grands Prix across five continents. The road racing series is enjoyed by hundreds of millions of fans around the world through television broadcast.
Will the Management Change?
Under the agreement Dorna Sports S.L., will remain an independently run company attributed to Liberty Media’s Formula One Group tracking stock. In addition to this, Liberty Media Corporation also revealed that Carmelo Ezpeleta, who has been CEO since 1994, will remain in his position. Also, the business will be run as usual along with his management team. Furthermore, the business will remain based in Madrid as well.
How Much Did Liberty Media Acquire from Dorna Sports
Dorna Sports not only holds the exclusive rights to MotoGP but also Moto2 and Moto3. In addition to this the company also has rights to the FIM Enel MotoE World Championship, the MOTUL FIM Superbike World Championship and the new FIM Women’s Circuit Racing World Championship.
Now, Liberty Media Corporation will be acquiring around 86% of Dorna Sports. However, the Dorna management will retain approximately 14% of their equity in the business. Liberty Media revealed that the enterprise value for Dorna/MotoGP is around EUR 4.2 billion along with an equity value of EUR 3.5 billion. Also, MotoGP existing debt balance is likely to remain the same.
Liberty Media Corporation
Liberty Media Corporation own and operates a wide range of media, communications and entertainment businesses. These are attributed to Liberty SiriusXM Group, the Formula One Group and the Liberty Live Group. Liberty Media also has subsidiaries such as subsidiaries Formula 1 and Quint as well as other minority investments.
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