MotoGP News: Liberty Media's Takeover Runs Into EU Commission Probe

Saajan Jogia | Dec 14, 2024

Apr 14, 2024; Austin, TX, USA; Jorge Martin (89) of Spain and Prima Pramac Racing and Maverick Vinales (12) of Spain and Aprilia Racing rides during the MotoGP Grand Prix of The Americas at Circuit of The Americas. Mandatory Credit: Jerome Miron-Imagn Images / Jerome Miron-Imagn Images

Liberty Media Corp., the owner of Formula 1, faces an in-depth probe by the European Union into its proposed $3.5 billion acquisition of the MotoGP World Championship. This marks the first major merger case to come under scrutiny by the EU's new antitrust chief, Teresa Ribera.

In April, Liberty Media, announced plans to acquire an 86% stake in Dorna Sports, the longtime owner of MotoGP, in a deal valued at €4.2 billion (€3.5 billion excluding Dorna's 14% stake). To support the purchase, Liberty disclosed in August that it would sell an $825 million stake in F1.

However, Liberty Media's proposed acquisition of Dorna Sports was widely expected to face scrutiny from the EU, as the regulator had previously mandated that F1’s former owner, CVC Media, divest MotoGP when it took over Formula 1 in 2006 to avoid potential competition concerns.

Now, the same situation is unfolding with Liberty Media, which is reportedly undergoing investigation by the European Union headed by Ribera, Spain's deputy prime minister, who is said to be concerned about the impact the deal could have on the broadcasters and channels that stream the sport, especially since both premier class giants will come under one umbrella. As a result, EU officials are reported to initiate a second round of the investigation into the mega-deal by 19 December.

The investigation into Liberty Media’s proposed MotoGP takeover was prompted by a formal complaint from Formula E founder Alejandro Agag, who strongly urged the European Commission to thoroughly scrutinize the deal. Agag expressed significant concerns that consolidating control of two major global motorsport events under a single powerful corporation could potentially violate competition laws, arguing it would dangerously concentrate excessive influence and power in one entity.

Last month, Liberty Media's president and CEO, Greg Maffei, revealed that the European Commission case was the only significant remaining hurdle in its ambitious takeover of MotoGP, a deal initially expected to conclude successfully by the end of this year. He had stated:

“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.”

With the EU Commission calling for a second round of investigations, the timeline for Liberty's ambitious takeover of the sport now faces significant uncertainty. It also raises serious questions about the potential repercussions and future implications should the Commission ultimately decide to block Liberty Media’s high-profile purchase of MotoGP.