The European Union has launched an investigation into Liberty Media’s acquisition of MotoGP, prompting delays before a confirmed takeover.
Liberty Media revealed earlier this year that it had agreed to purchase an 86% majority ownership of Dorna Sports, which holds the rights to the MotoGP and WorldSBK championships.
There are concerns that a possible takeover could result in a monopoly due to Liberty’s well-established ownership of the racing series Formula 1, Formula 2, and Formula 3.
The EU Commission believes the American company’s possible takeover could increase consumer prices.
This investigation stalls any possible finalisation of the takeover for another 90 working days, meaning that the earliest sale opportunity could be delayed until May 2025.
Teresa Ribera will be leading the investigation, as she is the current vice president of the Commission and the Spanish government.
The European Commission’s statement
“The Commission will now carry out an in-depth investigation into the effects of the proposed transaction to determine whether its initial competition concerns are confirmed,” the statement read.
“During its in-depth investigation, the Commission will also further investigate whether Liberty Media’s and Liberty Global’s largest shareholder, Mr. John Malone, is able to exert decisive influence over both companies.
“If confirmed, the transaction could also give rise to concerns that Liberty Media may foreclose rival broadcasters in countries in which Liberty Global is active, namely in Belgium, Ireland and the Netherlands.
“The proposed transaction was notified to the Commission on 14 November 2024. The Commission now has 90 working days, until 14 May 2025, to take a decision.
“The opening of an in-depth inquiry does not prejudge the outcome of the investigation.”
Dorna believe the sale will still be approved
Spanish promoter Dorna has responded with a statement of its own.
“Liberty Media today received notice from the European Commission opening a Phase II investigation into its previously announced acquisition of MotoGP,” it read.
“We are confident this transaction will benefit MotoGP’s business, fans, viewers and the broader motorcycle industry. Market participants have widely recognized the benefits of the transaction.
“There is a very large and growing market for audiovisual entertainment well beyond sports, and this transaction will enhance MotoGP’s ability to compete in this highly competitive market.
“We will continue to work with the European Commission as they progress their review and have agreed with the sellers to an extension of the longstop date to June 30, 2025 in order to accommodate the more in-depth investigation.
“We believe that the European Commission will conclude that the transaction should be approved.”
