F1 owner Liberty Media faces EU probe over $4 billion MotoGP takeover
Liberty Media has started to face issues with the European Union after closing in on the deal to acquire MotoGP in the coming years.
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Carmelo Ezpeleta, F1 CEO Stefano Domenicali and MotoGP (via IMAGO).
Liberty Media has continued to expand its horizons to propel Formula 1’s popularity. The American-based giant recently set on a venture to acquire MotoGP to merge the viewership of the two sports. This deal was supposed to be over $4 billion, with the media company selling major shares of the pinnacle of motorsport. However, the European Union has delved into the deal between the two giants.
The MotoGP deal set a whopping estimate of over $4 Billion alongside managing Formula 1 seemed like a big deal. As a result, the European Union is set to investigate Liberty Media’s MotoGP acquisition. The Union also raised questions over the impact on broadcasting services if the same company handles the two major sports.
Ex-CEO of Liberty Media Greg Maffei, put forth his opinion on the matter back in April when the matter started. Maffei claimed that he was confident that the company would get through the probe with ease. The reason for this was that Formula 1 and MotoGP were only a small subset of the broad market available for motorsports.
We are very confident we will get this through regulators because we believe there is a broad market for sports and entertainment properties, of which both Formula 1 and MotoGP are only a small subset.
Greg Maffei said, as reported by Motorsport.com
EU planning a ‘phase 2 probe’ into Liberty Media after similar issues in the past
Liberty Media isn’t the first company daring to invest in such a venture apart from Formula 1. The sport’s previous owner, CVC Media was handling the commercial rights to both sports. The media corporation was forced to sell MotoGP in 2006 after facing regulatory issues.
As a result, the EU is also set to launch a second probe into the matter to further strengthen their case. The European Union was the one that forced CVC Media to sell MotoGP in the past after facing the issues. Greg Maffei further noted that Liberty Media didn’t plan to run both sports as a ‘bundle’ or try to bring them together.
We are going to not treat these as a bundle or try to bring them together in the market.
Greg Maffei added
If the probe is unsuccessful, Liberty Media will probably handle both Formula 1 and MotoGP to a great extent. The pinnacle of motorsport is only set to receive multiple benefits if the viewership is combined. Hence, time will tell about how the deal pans out if the European Union gives a green light on the matter.
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Aditya Pandya
(1444 Articles Published)