Yahoo Autos U.S. Media Company Buys Stake in F1, Will Evolve into Full Purchase
It's been talked about for a while, but now it's finally happening: U.S. media company Liberty Media has bought a stake in F1 worth $4.4 billion, which will eventually evolve into a full purchase. Per a CNBC report, the company announced its purchase of an 18.7% stake in F1 Wednesday.
F1's CEO Bernie Ecclestone will remain in his position for the foreseeable future with Chase Carey, executive vice president for 21st Century Fox, stepping in as chairman. As of right now, it's unclear when exactly Liberty Media's stake will evolve into a full purchase.
Racer reported Tuesday that Liberty Media would likely put down roughly $4-5 billion at a later stage to take over the 35.5% stake of F1's largest shareholder, CVC Capital partners. Liberty Media also owns the Atlanta Braves baseball team, as well as stakes in SiriusXM, Live Nation, Time Warner, and Viacom.
Interestingly, CNBC reports that Liberty Media intends to change its name to the Formula 1 Group. CVC will own 65% of the Liberty when it's renamed, but it won't control voting shares.
As Liberty Media is based in the U.S., some have speculated that this could help increase F1's currently small presence in this country. It's definitely within the company's interest to grow F1's fanbase, especially in areas where it's small.
This story was last updated at 4:43 p.m. ET.
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