Liberty Media Looks To Acquire Controlling Interest In F1 instead of IndyCar (3rd Update)
09/05/16 UPDATE
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| Is Bernie starting rumors to get John Malone to cough up more money? |
The sale of Formula 1 to Liberty Media Corporation is not yet guaranteed because the group still faces competition from other interested parties, Autosport understands writes Ian Parkes.
Speculation on Sunday ahead of the Italian Grand Prix suggested F1's current majority shareholder private equity company CVC Capital Partners was poised to end its 10-year involvement by selling its 35.5% stake, with a deal possible as soon as Tuesday.
But sources suggest negotiations will go on longer, not least because there remain two other potential buyers still in the running.
Liberty Media, run by multi-billionaire media mogul John Malone, who owns the Atlanta Braves in Major League Baseball and is also the largest landowner in the United States, is the frontrunner.
But CVC is also understood to still be negotiating with RSE Ventures, an investment firm run by Miami Dolphins owner Stephen Ross, who is working in tandem with a Qatari consortium, and another as yet unnamed private equity firm.
The price tag is believed to be somewhere in the region of $8.4billion (£6.31bn), which would represent a profit of $6.4bn on CVC's original outlay in 2006.
Though there has long been speculation over CVC's future in F1, this is the closest it has been to a full or partial exit.
The belief is CVC would be willing to accept a down payment, in the region of $5billion, for an initial 20% stake, with an option for any buyer to purchase the remaining shareholding.
The situation is further clouded by the fact another of F1's shareholders in Norge, the world's largest sovereign wealth fund based in Norway, is also looking to sell up.
At present CVC is the largest shareholder, with F1 supremo Bernie Ecclestone holding a 5.3% stake, while the 85-year-old's Bambino family trust has a further 8.5%.
The other shareholders are investment management company Blackrock and US fund manager Waddell & Reed.
It is believed CVC is taking strict control of sale talks without too much influence from Ecclestone – who still spent time in the Monza paddock speaking to CVC co-owner Donald Mackenzie, Ferrari chairman Sergio Marchionne and Daimler head Dieter Zetsche.
While it is possible Ecclestone could be ousted as he is effectively only an employee of CVC under the current arrangement, the belief is he would remain for at least a handover period given his level of influence over and connections in F1.
It has been suggested Chase Carey, executive vice-chairman of 21st Century Fox and a former business partner of Malone, would become F1's new chairman.
Current Formula E CEO Alejandro Agag has also been linked with a possible role, potentially as Ecclestone's successor at chief executive level, along with Zak Brown, another American businessman and motorsport enthusiast. Ian Parkes/Autosport
09/03/16 This rumor is upgraded to 'fact' today. The deal is definitely done on the sale of F1's majority stake by current owners CVC, according to multiple authoritative publications.
Auto Motor und Sport (Germany), La Gazzetta dello Sport and Sky (Italy), the Sunday Times (Britain) and Auto Bild (Germany) all agree that Liberty Media, headed by US tycoon John Malone, is buying F1 for $8.5 billion.
The Sunday Times said F1 supremo Bernie Ecclestone is "refusing to deny" that the first transaction will be done early next week.
And Auto Motor und Sport claimed: "When we asked, Bernie Ecclestone confirmed that the sale will be done in the coming week."
The reports claim the sale will be done in two stages, with Ecclestone to definitely stay as chief executive in the initial, transitional phase.
"I will do what I have always done," Auto Motor und Sport quoted the 85-year-old as saying.
"It is my decision what role I take."
The report linked Formula E chief Alejandro Agag with Ecclestone's role beyond the first phase.
Germany's Auto Bild claimed that Ecclestone is still pushing for CVC to sell to a Qatar group, so that he definitely retains his role at the top.
F1 legend Gerhard Berger welcomed the news that CVC is selling.
"It will bring in fresh ideas," he told the Italian broadcaster Sky at Monza, adding that the fact the new owner is American will also help.
"America is a nut that formula one never really cracked," Berger added.
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| John Malone |
08/26/16 Recall AR1.com's rumors about the X1 deal they wanted to do with IndyCar that included taking control of the series and taking the series to new levels never imagined. They were real.
Liberty media was behind that deal that fell through because the Hulman George family did not want to give up control of IndyCar even though the deal would have meant the family kept control of the Indy 500 and IMS.
Hence IndyCar will stay minuscule for a very long time and Liberty Media has now turned their sights to F1:
John Malone's Liberty Media is leading a US$8.5B "battle for control" of F1 "after proposing a deal that would see the sport’s owner "listed on" the NASDAQ stock exchange. The company is in "detailed talks with F1's controlling shareholder, CVC Capital Partners, about a transaction."
Sources said that a "frenetic period for the ownership and management of F1 could also involve" former DirecTV exec Chase Carey "being appointed as chairman of the sport's parent company prior to or alongside a deal". SKY NEWS