Ecclestone sells F1 to US company Liberty Media

8 years ago - Published in Finance, Fundamental Analysis

US media company Liberty Media acquires Formula 1: the deal, which evaluates the sport $ 8 billion, starting with the acquisition of a 18.7% stake for $ 4.4 billion. Bernie Ecclestone remains CEO, while Chase Carey was named president. The full acquisition will take place when the agreement will be permanently closed, expected in the first quarter of 2017. In detail, Liberty Media – reports the CNBC – would pay $ 1.1 billion in cash, $ 131 million in the communication group actions and 351 million in the form of debt issued by the same Formula One.

The deal brings Liberty control of the organisation's Grand Prix races, 21 in total this year stretching from Melbourne and Shanghai to Sochi, Russia, Mexico City and finishing in Abu Dhabi.

In an interview with The Associated Press, Ecclestone says that retains its role of management and supervision as chief executive officier (CEO) and the Formula 1 enters a new era under the US group, controlled by 75-year-old tycoon John Malone. The broader Liberty group runs a wide range of media-centric businesses, including Time Warner cable television, concert promoter Live Nation, the Atlanta Braves Major League Baseball team, and a stake in Formula E, the all-electric car version of Formula One series launched in 2012.

The 85-year-old Ecclestone plans to stay longer in the Circus, "After two or three years I will maybe take it easy a bit," he said. Chase Carey, an American executive vice-chairman of 21st Century Fox, is also set to assume the role as chairman of F1.

Bernie Ecclestone created the FOM (Formula One Management), which in 1995 FIA granted the commercial rights for a period of fifteen years. After 5 years, the FOM was seen to confirm the rights to Formula 1 until 2110, ie for more than a century. In 2014 he left the role of Executive Director.

Now, with the entry of Liberty Media, new era starts for Formula 1, and Ecclestone himself is convinced: "I hope they do a lot because they are American and have had dealings in television in America for a long time," he said. "They have dealings with a lot of sponsors because of their TV networks and social media which we haven't done (as much) in the past."