Liberty Media, the parent company of Formula One (F1), is strengthening its foothold in the motorsports industry with the acquisition of Dorna Sports, the entity holding the rights to the MotoGP World Championship. The move underscores Liberty's commitment to diversifying its portfolio within the realm of motorsports.
In a significant deal valued at $4.5 billion, Liberty Media is purchasing Dorna Sports from private equity firm Bridgepoint and the Canada Pension Plan Investment Board. This acquisition grants Liberty an 86% stake in MotoGP, while MotoGP management will retain control over the remaining 14%.
MotoGP, a premier motorcycle racing championship established in 1949, is slated to host 21 races across 17 countries in the current year. Greg Maffei, CEO of Liberty Media, expressed optimism about the potential of MotoGP's business, emphasising plans to foster growth for the benefit of MotoGP enthusiasts, teams, commercial partners, and shareholders alike.
Notably, Warren Buffett's Berkshire Hathaway holds a stake in Liberty Media, as revealed in its latest 13F filing, which disclosed ownership of over 7 million Series C Formula One shares as of the conclusion of 2023.
Following the announcement, Liberty Media's Series C Formula One shares experienced a slight dip, trading 0.9% lower at $65 as of noon ET on Monday. Nonetheless, the shares have demonstrated a positive performance thus far in 2024, having appreciated by approximately 4.3%.