Liberty Media Secures EU Approval for MotoGP Acquisition
By Foo Yun Chee
BRUSSELS (Reuters) - Liberty Media, which owns Formula One, is set to secure unconditional EU antitrust approval for its 3.5-billion-euro ($3.8 billion) acquisition of MotoGP owner Dorna Sports, people with direct knowledge of the matter said.
Liberty Media announced the deal to buy 86% of MotoGP in April last year, with Dorna management keeping around 14% of its equity, giving the deal an enterprise value of 4.2 billion euros for Dorna/MotoGP and an equity value of 3.5 billion euros.
The European Commission, which acts as the competition watchdog for the 27-country European Union, is set to nod the deal through without demanding concessions, the people said.
The EU executive, which will decide on the deal by July 1, declined to comment.
Liberty Media said it was working constructively with the Commission.
"There is a very large and growing market for audiovisual entertainment well beyond sports, and the transaction will enhance MotoGP's ability to compete in this highly competitive market," a Liberty Media spokesperson said.
The EU antitrust enforcer had previously warned that the deal could push up prices for the licensing of broadcasting rights for motorsports events hosted by both companies.
Its investigation also focused on whether Liberty Media's and U.S. cable company Liberty Global's largest shareholder, John Malone, has decisive influence over both companies that may prompt Liberty Media to shut out rival broadcasters in Belgium, Ireland and the Netherlands where Liberty Global is present.
The Capitol Forum was the first to report about the imminent unconditional EU clearance.
($1 = 0.9122 euros)
(Reporting by Foo Yun Chee. Editing by Emelia Sithole-Matarise and Mark Potter)
