Liberty Media receives final approval for MotoGP acquisition

Published 23/06/2025, 14:46
Liberty Media receives final approval for MotoGP acquisition

ENGLEWOOD, Colo. - Liberty Media Corporation received unconditional approval from the European Commission to complete its acquisition of Dorna Sports, the exclusive commercial rights holder of the MotoGP World Championship, according to a press release statement. Liberty Media's stock has shown strong momentum, trading near its 52-week high of $49.47, with a robust 22% return over the past year according to InvestingPro data.

The transaction, valued at €4.3 billion in enterprise value, is now expected to close no later than July 3, 2025. This approval represents the final regulatory condition needed to complete the deal. InvestingPro analysis indicates Liberty Media currently maintains a "FAIR" overall financial health score, with particularly strong price momentum metrics, suggesting solid positioning for this major acquisition.

Under the terms of the agreement, Liberty Media will acquire 84% of Dorna, while Dorna management will retain the remaining 16%. The purchase price will be paid in cash, including funds from Formula One Group and Formula 1, along with proceeds from $1 billion of committed term loan financing at Formula 1.

Carmelo Ezpeleta, who has served as CEO of Dorna since 1998, will continue to run the business from its Madrid headquarters. Following the acquisition, Liberty Media executives including Chase Carey, former CEO of Formula 1, will join Dorna's board of directors.

"MotoGP is a highly attractive premium sports asset with incredible racing, a passionate fanbase and a strong cash flow profile," said Derek Chang, Liberty Media President and CEO.

The 2025 MotoGP season comprises 22 races across 18 countries. After closing, Liberty Media's Formula One Group tracking stock will include its subsidiaries Formula 1, MotoGP and Quint, as well as certain minority investments.

Formula 1's pro forma net leverage following the acquisition is expected to be under 3.5x, while Dorna's pro forma leverage is projected to be just below 5.5x after the transaction closes. Liberty Media currently operates with a debt-to-equity ratio of 1.67, which InvestingPro classifies as moderate. For deeper insights into Liberty Media's financial position and access to over 30 additional key metrics, investors can explore the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Atlanta Braves Holdings reported the results of its Annual Meeting of Stockholders, where key proposals were voted on. Stockholders elected two Class II directors, Terence F. McGuirk and Diana M. Murphy, to serve three-year terms. Additionally, KPMG was ratified as the company's independent auditor for the fiscal year ending December 31, 2025. In analyst updates, Benchmark's Matthew Harrigan maintained a Buy rating on Liberty Braves Group, setting a price target of $60. Harrigan highlighted the strong market valuations of sports teams, noting the Atlanta Braves' position as the eighth most expensive MLB team, valued at $3 billion. This valuation is part of a broader trend of rising sports team values, with MLB team valuations increasing by 36% over the past five years. Despite media rights uncertainties, the Braves' extensive fan area TV market and efficient payroll return have contributed to their robust valuation. These developments reflect ongoing investor interest and strategic decisions within the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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