RACING NEWS

Bernie Ecclestone relinquishes control over Formula 1

Bernie Ecclestone relinquishes control over Formula 1 image

Aurick Go / FIA | January 24, 2017 13:00

Liberty Media completes purchase of Formula 1

Having previously announced their move to acquire Formula One, Liberty Media has now finalized and completed the necessary documents to fully take over the sport. In a joint announcement with Delta Topco, the parent company of Formula One, Liberty has announced the completion of their acquisition from a consortium of sellers.

In addition to his current role as chairman, Chase Carey has also been appointed as Chief Executive Officer of F1. Following consideration of his efforts to bring the sport to new heights, Bernie Ecclestone will now act in an advisory position as Chairman Emeritus to the board.

With regards to his newly appointed position, Carey says, “I am excited to be taking on the additional role of CEO. F1 has huge potential with multiple untapped opportunities. I have enjoyed hearing from the fans, teams, FIA, promoters and sponsors on their ideas and hopes for the sport. We will work with all of these partners to enhance the racing experience and add new dimensions to the sport and we look forward to sharing these plans over time.”

Ecclestone adds, “I’m proud of the business that I built over the last 40 years and all that I have achieved with Formula 1, and would like to thank all of the promoters, teams, sponsors and television companies that I have worked with. I’m very pleased that the business has been acquired by Liberty and that it intends to invest in the future of F1. I am sure that Chase will execute his role in a way that will benefit the sport.”

Liberty Media’s 100% share acquisition of Formula One is comprised of cash and newly-issued Series C shares of Liberty Media Group trading stock (LMCK). A debt instrument exchangeable into shares of LMCK are also included in the transaction. All in all, the transaction amounted to an enterprise value of $8.0 Billion and an equity value of $4.4 Billion.

Shortly after the completion of their acquisition, the Liberty Media Group will be renamed as the Formula One Group and their ticker symbols for the Series A, Series B and Series C Liberty Media Group tracking stocks will be changed from LMC (A/B/K), respectively, to FWON (A/B/K), respectively,shortly after the name change becomes effective. Liberty Media expects the group name change and the symbol change to occur later this week. F1 will still remain based in London and Greg Maffei will act as Deputy Chair of the board of F1.