Formula 1 parent company Liberty Media is selling $825 million worth of F1 shares to fund its majority takeover of MotoGP rights holder Dorna Sports.
Liberty announced its planned acquisition of MotoGP in the form of an 86% takeover of commercial rights holder Dorna in April.
The deal, slated for completion by the end of 2024 is worth in the region of $4.2 billion and to help fund the takeover, Liberty is selling 10,650,000 shares of its Series C Liberty Formula One Common Stock, aka FWONK, at a price of $77.50 a share.
In a written statement, “Liberty Media also granted the underwriter of the offering an option to purchase up to an additional 1,597,500 FWONK shares.”
Liberty expects to generate $825,375,000 from its share sales and “expects to use the net proceeds from the sale of shares in this offering (i) to fund the increase in total cash consideration for the [MotoGP] Acquisition, which is expected to close by year-end 2024 and (ii) for general corporate purposes, including the repayment of debt.”
The acquisition of Dorna is set to change the landscape of global motorsport, granting Liberty control of both four and two-wheeled Grand Prix racing.
In addition, Liberty will also acquire the right sot the FIM Superbike World Championship, which also falls under Dorna’s purview.
Still, Dorna will remain an independent company under the Liberty banner, with CEO Carmelo Ezpeleta remaining at his post in the company’s Madrid base.
Speaking at the time the takeover bid was announced, Liberty Media President and CEO Greg Maffei said, “We are thrilled to expand our portfolio of leading live sports and entertainment assets with the acquisition of MotoGP.
“MotoGP is a global league with a loyal, enthusiastic fan base, captivating racing and a highly cash flow generative financial profile.
“Carmelo and his management team have built a great sporting spectacle that we can expand to a wider global audience.
“The business has significant upside, and we intend to grow the sport for MotoGP fans, teams, commercial partners and our shareholders.”
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