Formula 1 Sold to US Media Firm for $4.4B
U.S. company Liberty Media has agreed to purchase Formula 1 for a total of about $4.4 billion.
An 18.7 percent stake in the F1 racing league will be held by Liberty Media immediately while the full sale of F1 could be finished as early as the first quarter of 2017.
F1’s current CEO Bernie Ecclestone will remain in his position for now, while Chase Carey, executive vice president of 21st Century Fox will be made chairman of F1. Liberty will fork over $1.1 billion in cash, 138 million Liberty Media shares and $351 million worth of exchangeable debt to F1. The company will also assume a $4.1 billion debt currently held by Formula 1.
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Once the deal is finished, Liberty Media intends to change its name to the Formula One Group. F1’s current largest shareholder, CVC, will then own a 65 percent stake in the newly-named company, though CVC is giving up all of its voting shares to Formula One Group.
Liberty Media also owns the Atlanta Braves, a 53 percent stake in Sirius XM Radio, a 26 percent stake in Live Nation Entertainment and smaller stakes in Viacom, Sprint and Barnes & Noble.
[Source: CNBC]
Stephen covers all of the day-to-day events of the industry as the News Editor at AutoGuide, along with being the AG truck expert. His truck knowledge comes from working long days on the woodlot with pickups and driving straight trucks professionally. When not at his desk, Steve can be found playing his bass or riding his snowmobile or Sea-Doo. Find Stephen on <A title="@Selmer07 on Twitter" href="http://www.twitter.com/selmer07">Twitter</A> and <A title="Stephen on Google+" href="http://plus.google.com/117833131531784822251?rel=author">Google+</A>
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Bernie gets to sell his cake AND eat it too. that's like selling the house to a working couple, but telling them i will still live there for a few YEARZ!!