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EU opens probe into Liberty Media’s proposed Dorna Sports acquisition
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BRUSSELS (Reuters) -The European Commission said on Thursday it had opened an in-depth investigation into the proposed 3.5 billion euro ($3.62 billion) acquisition of Dorna Sports by Liberty Media .
BRUSSELS (Reuters) -The European Commission said on Thursday it had opened an in-depth investigation into the proposed 3.5 billion euro ($3.62 billion) acquisition of Dorna Sports by Liberty Media .
Liberty Media said in April that it would acquire about 86% of Dorna Sports, the parent company of FIM World Championship Grand Prix, also known as MotoGP.
The EU said that Liberty owns the exclusive commercial rights for the FIA Formula One World Championship, while Dorna Sports holds exclusive commercial rights for MotoGP and other motorcycle racing championships.
“The Commission’s preliminary investigation indicates that the transaction may reduce competition between Liberty Media and Dorna Sports in the licensing of broadcasting rights for motorsports content”, the EU said.
Liberty Media said it would work with the EU during the probe and that it had agreed with sellers to extend the completion date for the deal to June 30, 2025 in order to accommodate the investigation. Liberty also said that it believed the transaction should be approved.
($1 = 0.9657 euros)
(Reporting by Charlotte Van Campenhout. Editing by Jane Merriman)
An acquisition is a corporate action in which one company purchases most or all of another company's shares to gain control of that company.
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the day-to-day operations of the EU.
Broadcasting rights are legal permissions granted to a company or organization to transmit content, such as sports events, on television or radio.
A preliminary investigation is an initial inquiry conducted to determine whether there is enough evidence to warrant a full investigation or legal action.
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