American entertainment company Liberty Media, which owns interests in a range of media, communications and entertainment businesses, has agreed to buy the stake in F1 owned by private equity company CVC Capital Partners, the current majority shareholder.
Liberty Media will acquire 100 percent of the shares of Delta Topco, the parent company of Formula One, and has purchased 18.7 percent of Formula One itself.
The acquisition is expected to be completed in 2017 and is dependent on certain conditions being met, such as the Fédération Internationale de l'Automobile (FIA), the governing body of Formula One, approving the deal.
Interestingly, it appears that Liberty Media will open the door for F1’s teams to participate in the investment. In a statement, the new owners said “Certain teams have already expressed an interest in investing after completion of the acquisition”.
The consortium of sellers led by CVC will own approximately 65 per cent of the Formula One Group's equity and will have board representation at Formula One to support Liberty Media in continuing to develop the full potential of the sport. In addition, a CVC representative will be joining the Liberty Media Board of Directors.
Chase Carey, the current vice president of 21st Century Fox, has been appointed by Delta Topco and will serve as the new chairman of Formula One, succeeding Peter Brabeck-Letmathe, who will remain on Formula One's board as a non-executive director. Carey will work alongside Ecclestone, who will remain Formula One's chief executive officer.
