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Liberty Media’s Acquisition of Dorna Sports Gains EU Approval Momentum
Liberty Media is on track to receive approval from the European Union’s antitrust regulators for its acquisition of Dorna Sports, the organization behind MotoGP. Reports suggest that the €4.2 billion deal will be sanctioned by the European Commission in the near future.
According to Reuters, the anticipated approval follows Liberty’s move, unveiled in April of the previous year, to acquire an 86% share in Dorna, leaving the Spanish company with a minority stake of 14%.
The transaction has attracted attention from the EU’s antitrust authorities, especially given Liberty’s ownership of Formula 1 since 2017. However, reports indicate that the European Commission is poised to approve the acquisition without imposing any significant conditions. A definitive decision is expected before 1 July.
If approved, this acquisition would signify a reversal in the stance of EU regulators. In 2006, when CVC Capital Partners aimed to add Formula 1 to its portfolio, the firm was compelled to divest MotoGP before completing the deal.
Dorna’s Legacy in MotoGP
Dorna Sports, under the stewardship of CEO Carmelo Ezpeleta, has managed MotoGP and various other motorcycle racing series since 1992. The company’s long-standing influence has been pivotal in shaping motorcycle racing globally.
While the EU executive has not directly commented on the ongoing approval process, a spokesperson for Liberty Media emphasized the potential benefits of the acquisition for MotoGP. The spokesperson noted, “There is a very large and growing market for audiovisual entertainment well beyond sports, and the transaction will enhance MotoGP’s ability to compete in this highly competitive market.”
The acquisition by Liberty Media could indicate a significant shift in the landscape of motorsport ownership, with potential implications for the future of both MotoGP and Formula 1 as they navigate an increasingly digital and competitive media environment.
Source
www.autosport.com