Liberty Media to Acquire Dorna Sports, Commercial Rightsholder of MotoGP World Championship, from Bridgepoint and Canada Pension Plan Investment Board for an Enterprise Value of €4.2B and an Equity Value of €3.5B

Author: Benzinga Newsdesk | April 01, 2024 05:34am

Liberty Media Corporation ("Liberty Media") (NASDAQ:FWONA, FWONK))))) announced today that it has entered into an agreement to acquire Dorna Sports, S.L. ("Dorna"), the exclusive commercial rights holder to the MotoGP™ World Championship, from Bridgepoint and Canada Pension Plan Investment Board ("CPP Investments"). MotoGP will be attributed to Liberty Media's Formula One Group tracking stock.

Liberty Media will acquire 86% of MotoGP with MotoGP management retaining approximately 14% of their equity in the business. The transaction reflects an enterprise value for MotoGP of €4.2 billion and an equity value of €3.5 billion with the existing debt balance at MotoGP expected to remain in place after close. The equity consideration to sellers is expected to be comprised of approximately 65% cash, 21% in shares of Series C Liberty Formula One common stock (NASDAQ:FWONK) and 14% of retained MotoGP management equity. The cash consideration will be funded with a mix of cash and debt, subject to market conditions. The FWONK share consideration will be priced on a 20-day volume weighted average price prior to transaction close. Liberty Media retains an option at its sole discretion to deliver additional cash in lieu of FWONK common stock.

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