In a major strategic move, Liberty Media, already at the head of Formula 1, is heading towards the acquisition of Dorna Sports, the holder of MotoGP rights, for a sum of around 4 billion euros. The Financial Times reveals that this transaction would place the two titans of motorsport racing under one umbrella.
An official announcement on this operation could be made soon, putting an end to speculation and ahead of competing proposals from TKO, owner of the UFC and WWE, as well as Qatar Sports Investments, linked to Paris-Saint-Germain.
However, this potential merger between F1 and MotoGP will not be done without a hitch, because it will have to pass the regulatory examination. The situation is reminiscent of that of a few years ago, when CVC Capital Partners, involved in both sports, had to separate from MotoGP to acquire F1, a decision dictated by European regulators. James Killick, competition law expert, stressed to the Financial Times regulatory authorities' likely interest in the deal, questioning whether the market has since evolved.
Possible merger between Liberty Media and Dorna promises to reshape the motorsports landscape
Liberty Medium, since his arrival at the helm of F1 in 2017, has been at the origin of a real boom in the discipline, in particular thanks to the Netflix series “Drive To Survive”, which has expanded the fan base. The company has also been able to leverage social media to strengthen the impact of F1, while expanding its calendar with new destinations such as Las Vegas, Miami, Jeddah and Doha.
The results speak for themselves: an operating profit for F1 in 2023 amounting to 392 million, marking a growth of 64% compared to the previous year, and revenues which increased by $2,5-3,2 billion. Compare with Dorna Sports, whose turnover amounted to 483 million the same year.
Dorna's current shareholders include Bridgepoint, the Canada Pension Plan Investment Board, and Carmelo Ezpeleta, the CEO of the company. The possible merger between Liberty Media and Dorna promises not only to reshape the landscape of motorsports but also to raise the question of the future of these competitions, under the aegis of a single owner.
