Discovery Communications, Liberty Global Unveil Deal For Stake In Formula E Series

Discovery Communications and Liberty Global on Monday "unveiled a deal to take a stake in the company behind the Formula E electric racing circuit after previously looking at a deal for Formula One," according to Georg Szalai of the HOLLYWOOD REPORTER. Financial details were not disclosed. However, sources said that the combined investment was approximately $55M for a "one-third stake in the company behind the circuit" HOLLYWOODREPORTER.com.

The FINANCIAL TIMES' Kadhim Shubber noted Liberty Media Chair John Malone's investment in the fledgling racing circuit "will help boost its credibility among car manufacturers and fund the development of new products that further blur the line between physical and digital sports, including a real-time video game where viewers race alongside drivers." The tie-up "could persuade car manufacturers who have previously shied away from the sport that it is here to stay." Volvo has "hinted it may participate, but to date Audi, Renault and India's Mahindra are the only big car manufacturers who have backed teams" FINANCIAL TIMES