ENGLEWOOD, CO – Liberty Media Corp (NASDAQ:FWONA), a $21.15 billion market cap company currently trading near its 52-week high with a "GREAT" financial health rating according to InvestingPro, announced today that it has extended the deadline to complete the acquisition of a major stake in Dorna Sports, S.L., the company behind MotoGP racing, to March 31, 2025. The decision comes as the European Commission initiated a detailed Phase II review of the transaction on Thursday.
The original agreement, disclosed on April 1, 2024, involved Liberty Media's Spanish subsidiary, Libertad Especia, S.L.U., purchasing approximately 86% of Dorna's equity interests for an equity value of €3.502 billion. The transaction, which represents a significant expansion for Liberty Media given its strong 35.32% year-over-year revenue growth, was subject to regulatory approvals, including from foreign competition and investment authorities.
With the European Commission's in-depth investigation pending, Liberty Media has chosen to extend the longstop date, the deadline by which the transaction must be completed, from December 31, 2024, to March 31, 2025. This extension is contingent upon Liberty Media paying an upfront amount of €126 million by January 3, 2025, which will not offset the final purchase price.
Liberty Media expressed confidence that the acquisition would enhance MotoGP's competitive position in the entertainment market and benefit fans and the motorcycle industry. The company has agreed to a further extension to June 30, 2025, if necessary, to accommodate the European Commission's review.
The acquisition is part of Liberty Media's strategic expansion in sports and entertainment, leveraging its expertise to grow the MotoGP franchise. The deal is expected to close subject to the satisfaction of the remaining regulatory condition.
In other recent news, Liberty Media has been the focal point of significant developments. The European Union is set to investigate Liberty Media's acquisition of the MotoGP World Championship, a deal valued at $3.67 billion. Officials from the EU's antitrust division have raised concerns over potential reduced competition in the broadcasting and streaming markets.
Simultaneously, Liberty Media's Q3 earnings call revealed a robust financial performance, particularly for its Formula One group, which reported a 15% increase in revenue and a 21% rise in adjusted OIBDA. The company also disclosed its expectation to close the MotoGP acquisition by year-end, with debt leverage ranging between 3.5 to 4 times.
In addition, Liberty Media announced plans for year-round activities in Las Vegas starting in late Q1 2025, aiming to engage new fans. The company also sees a strong sponsorship growth for F1 in 2025 and a healthy pipeline for 2026.
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