Liberty Media and MotoGP confirm investigation from the European Commission

Liberty Media and MotoGP have announced that they have received notice of the European Commission opening a more in-depth (Phase II) investigation into its proposed acquisition of MotoGP.

Having taken control of Formula One in 2017, Liberty Media announced in April that it would purchase the motorbike series from Spanish company Dorna Sports, which has owned MotoGP since 1992.

The deal will see Liberty acquire about 86% of Dorna, with Dorna’s management retaining the rest of the business. The acquisition is expected to be completed by year-end 2024 and is subject to the receipt of clearances and approvals by competition and foreign investment law authorities in various jurisdictions.

The transaction reflects an enterprise value for Dorna/MotoGP of €4.2 billion and an equity value of €3.5 billion, with MotoGP’s existing debt balance expected to remain in place after close.

The agreement will see Dorna Sports S.L., the exclusive commercial and television rights holder of MotoGP, remain an independently run company attributed to Liberty Media’s Formula One Group tracking stock. Carmelo Ezpeleta, who has been CEO since 1994, will remain in his position and continue to run the business with his management team with the business set to remain based in Madrid.

However, Liberty Media announced today that it received notice of the European Commission opening a more in-depth (Phase II) investigation into its proposed acquisition of MotoGP. Since the announcement in April, the agreement has received all other necessary regulatory approvals.

As a result of the opening of a Phase II investigation, all parties have agreed to extend the review process and “believe the European Commission will reach a positive conclusion.”

Reflecting on the announcement, MotoGP’s CEO Carmelo Ezpeleta added: “We expect this acquisition to gain the requisite EU approval and are excited by the potential opportunity to work with Liberty Media. In the meantime, we remain committed to our strategy to take the sport to new heights and continue our impressive rate of growth, further expanding our global fanbase of over 500 million.

“2024 saw season attendance of more than 3 million fans for the first time ever, and six tracks set new all-time records for their events. Our French GP broke the all-time attendance record.

“Looking ahead, we don’t just want more of the same, we want even more – and we are proud that our strategy is already beginning to deliver it. We hope fans are just excited as we are about the future and the incredible new season that is just around the corner.”

Speaking of the investigation, William Jackson, who serves as the President of the Board of MotoGP, commented: “MotoGP is the most exciting sport in the world and has a great future ahead. Bridgepoint and CPPIB have been hugely supportive of the Company and sport and remain fully committed to helping Carmelo and the team continue to drive the fantastic success the sport has enjoyed during 18 years as shareholders together.”

“MotoGP continues to build for the future and establish itself as a leading sports and entertainment property while the competition review remains ongoing. The most exciting sport on earth has a worldwide fanbase of over 500 million and aims to expand exponentially around the globe to a new, young and diverse audience.

“Our new brand identity, in development since 2023, reflects MotoGP’s intent. MotoGP is poised to transcend sport and further increase our cultural resonance, with a reinforced management team and internal changes already paying dividends in our mission to become a household name.

“MotoGP is already seeing increased audiences and record crowds and the proposed acquisition by Liberty Media will accelerate this ongoing evolution for the benefit of all stakeholders in the sport,” Jackson concluded.