Liberty Media Acquires Dorna Sports
Today, Liberty Media Corporation ("Liberty Media") (Nasdaq: FWONA, FWONK) announces its agreement to acquire Dorna Sports, S.L. ("Dorna"), the exclusive commercial rights holder to the MotoGP™ World Championship, from Bridgepoint and Canada Pension Plan Investment Board ("CPP Investments"). MotoGP will now become part of Liberty Media's Formula One Group tracking stock.
MotoGP stands as the apex of motorcycle racing, featuring exhilarating races boasting top speeds exceeding 360 kilometres per hour (223 miles per hour) and lean angles surpassing 60 degrees. From its inception in 1949 with six rounds across Europe, MotoGP has experienced significant growth, now spanning 21 races across 17 countries for the 2024 season. The business boasts a compelling financial profile with diversified and contracted revenue streams, high EBITDA margins, and low capital intensity, resulting in substantial free cash flow. Carmelo Ezpeleta, CEO of Dorna since 1994, will continue to lead the business from its Madrid headquarters.
Greg Maffei, Liberty Media's President and CEO, expresses excitement: "We're thrilled to expand our portfolio with the acquisition of MotoGP. It's a global phenomenon with a dedicated fan base, thrilling racing, and a financially robust profile. Carmelo and his team have built an exceptional spectacle that we aim to extend to a broader global audience. With significant growth potential, we're committed to expanding the sport for MotoGP enthusiasts, teams, commercial partners, and shareholders."
Carmelo Ezpeleta, CEO of Dorna, adds, "This marks the perfect progression for MotoGP, and we're eager for the opportunities it brings to Dorna, the MotoGP community, and fans. We take pride in the global sport we've nurtured, and this deal underscores its current value and future potential. Liberty's track record in sports asset development makes them the ideal partner to expand MotoGP's worldwide fanbase."
Under the terms, Liberty Media will acquire 86% of MotoGP, with MotoGP management retaining approximately 14% equity. The transaction values MotoGP at €4.2 billion enterprise value and €3.5 billion equity value, with existing debt expected to remain post-close. Consideration to sellers will comprise approximately 65% cash, 21% in shares of Series C Liberty Formula One common stock (Nasdaq: FWONK), and 14% retained MotoGP management equity. Goldman Sachs & Co. LLC advises Liberty Media and provides committed debt financing, while O'Melveny & Myers LLP serves as legal counsel.
Completion of the acquisition is anticipated by year-end 2024, subject to clearances and approvals by competition and foreign investment authorities across various jurisdictions.