Formula 1 is on the verge of being sold to a US media company in a deal said to be worth $8.4 billion.
The sport is currently controlled by CVC Capital Partners with its 35 per cent stake in the company that owns the Formula One Group, Delta Topco. According to Sky Sports, CVC is preparing to sell its controlling stake in the sport to Liberty Media Corporation which will see media mogul Chase Carey named as F1’s new chairman.
It is reported that Liberty Media Corporation could purchase CVC’s 35 per cent stake as early as today and ultimately push forward with its plans to acquire 100 per cent of the sport’s shares. It could then list F1 on the New York Stock Exchange.
Under the new deal, Carey may work alongside F1 chief executive Bernie Ecclestone. Ultimately however, the change in ownership could result in Ecclestone leaving his post as the face of Formula 1. If the new deal is approved, Ecclestone will walk away with over $400 million thanks to his 5.3 per cent stake in F1.
Interestingly, it is claimed that Liberty Media Corporation isn’t the only company in negotiations with purchasing F1. At least three other parties are thought to have had discussions with CVC about acquiring control stakes in F1, including the investment firm which owns the Miami Dolphins. Silver Lake, a private equity firm which just took over the UFC, has also been mentioned in takeover discussions as has Apple.
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