Formula 1 owner Liberty Media is hoping to complete its proposed takeover of MotoGP by the end of 2024.
The American mass media corporation has moved to add MotoGP to its portfolio and Liberty president and CEO Greg Maffei spoke about the progress of the deal on an investor call.
With Liberty publishing its accounts for the third-quarter, Maffei confirmed the finances are now in place to secure the acquisition of Dorna, the parent company of MotoGP.
Liberty announced in August that it was selling a $825million stake in F1 to fund the purchase of the motorcycling championship and has now said in its quarterly results that it has “secured all funding for [the] MotoGP transaction”.
“The third quarter was active both at the corporate level and at our operating businesses,” said Maffei.
“We closed the Liberty SiriusXM merger with SiriusXM, refinanced the F1 debt facilities and secured all necessary funding for our planned acquisition of MotoGP.
“We raised an incremental $850m in term loan B and $150m in term loan A commitments to fund that MotoGP transaction. All of that is deal contingent.
“We also issued $949m of FWONK shares, replacing the equity consideration to the sellers in the transaction, so we will directly pay them cash.
“We issued that stock at only a 4% discount to the market price, and it was placed with long-term holders. Those transactions complete the necessary funding for our MotoGP acquisition.”
The takeover has not been without its critics, most notably Formula E founder Alejandro Agag, who called on the European Commission to investigate the acquisition and Maffei revealed that is now one of the final remaining stumbling blocks to overcome.
“Let me turn briefly and give you a MotoGP transaction update,” Maffei added. “We are making progress with the European Commission which is our only remaining regulatory jurisdictional hurdle and we continue to expect a year-end close.”
Maffei also praised the current MotoGP owner for its response to the flooding in Valencia that has led to the season-ending race being moved to Barcelona as a result.
“Looking at the underlying MotoGP business, the Valencia race was cancelled due to the tragic flooding in that region,” he said. “Our thoughts are with the entire community.
“We give credit to Carmello and the management team at MotoGP for their quick and thoughtful response.
“They will pivot so the final race will be in Barcelona and it will be hosted there in solidarity with Valencia, and that will be the final races of the season.
“Various initiatives are also underway there to support relief efforts for Valencia that weekend.
“Looking at the business updates, MotoGP extended its rights agreement with FIM, their regulator, until 2060, they have announced their 2025 MotoGP calendar with 22 races across 18 countries, and they expect to release a new brand identity post-season.
“We look forward to more exciting racing and Liberty’s involvement.”
