US firm Liberty Media has confirmed it is buying the racing business Formula 1 in an $8bn deal
A huge amount of speculations have registered last month that Liberty Media was on the verge of taking over Formula1 sport.
That process, however, has largely languished in handling over the ownership from CVC Capital to US firm Liberty Media.
Sources have previously said the takeover will see the sport gain a public stock listing for the first time through a tracking stock called Liberty Media Group.
A takeover will yield a windfall of more than $400m (£300m) for veteran F1 chief executive Bernie Ecclestone, who owns a 5.3 per cent stake.
The takeover of the sports by Liberty Media has ended years of speculation about the ownership of the company. As of now Bernie Ecclestone will remain as chief executive but Chase Carey, vice-chairman of 21st Century Fox, will become the new chairman.
In a statement Bernie Ecclestone said: “I would like to welcome Liberty Media and Chase Carey to Formula One and I look forward to working with them.”
Chase Carey, vice-chairman of 21st Century Fox who has been made the new chairman has expressed his gratitude by saying, “I greatly admire Formula One as a unique global sports entertainment franchise attracting hundreds of millions of fans each season from all around the world.
“I see great opportunity to help Formula One continue to develop and prosper for the benefit of the sport, fans, teams and investors alike.”
The deal happened will going to take place in two half-:
- The first tranche would involve the acquisition of an 18.7 per cent stake of F1 and would not be subject to regulatory conditions.
- The remainder of the deal would see Liberty Media Corp acquiring the remaining 81.3 per cent of the company, which would be subject to the approval of certain regulators as well as the FIA, world motorsport’s governing body.