What is Liberty Media Corporation and why has it paid 4.2 billion euros for MotoGP

Liberty Media Corporation, the American media conglomerate that owns Formula 1, has signed an agreement with the British venture capital fund Bridgepoint for the purchase of 100% of Dorna Sports, the company that exploits the commercial and audiovisual rights of MotoGP, for 4.2 billion euros, according to Expansión.

Although last February Liberty Media negotiated exclusively with Bridgepoint without reaching an agreement, it was not until the end of this month when the American group presented a firm offer for Dorna Sports, with the aim of signing the agreement before the end of the first quarter, publishes the economic media.

Thus, Liberty, chaired by telecommunications and entertainment magnate John Malone, would be finalizing the acquisition of Dorna Sports – an operation pending the relevant authorizations – after it rejected a rival offer from TKO, another sports and entertainment group. Qatar Sports Investments, the group backed by the Arab State and owner of the Paris Saint-Germain football club, would also be interested in Dorna Sports.

However, the regulatory unknown persists as to whether competition organizations will see problems of business concentration in Liberty Media, since, if it acquired Dorna Sports, it would control the two major competitions in the motor world.

Bridgepoint and CPPIB

Bridgepoint, with around 40% of the share capital, and the Canada Pension Plan Investment Board (CPPIB), with 39%, are the main shareholders of Dorna Sports and, within the framework of the transaction, they exit the shareholding of the company. On the other hand, Dorna’s directors, including its CEO, Carmelo Ezpeleta, are also shareholders, Europa Press publishes.

The Dorna Sports management team, led by Carmelo Ezpeleta as CEO, will remain linked to the company.

In this transaction, Liberty Media has been advised by Goldman Sachs, while the selling party (Bridgepoint, CPPIB and the directors of Dorna) has had the support of Moelis & Company, from a financial point of view, and Uría Menéndez y Latham & Watkins, in the legal area.