EU to Review Liberty Media's MotoGP Acquisition

The European Union is preparing to examine Liberty Media's acquisition of the MotoGP World Championship, valued at 3.5 billion euros (3.67 billion dollars). Officials from the EU's antitrust division have expressed concerns that the merger could reduce competition in the broadcasting and streaming markets, as it would bring together two major motorsports brands under the leadership of the new antitrust chief, Teresa Ribera.

Liberty Media, which is expanding its motorsports portfolio, announced its intention to acquire approximately 86% of Dorna Sports, the parent company of MotoGP, in April. The remaining 14% will stay with Dorna's current management. This deal values Dorna/MotoGP at 4.2 billion euros in corporate value, with an equity value of 3.5 billion euros.

EU officials are preparing to elevate the investigation to Phase 2 before the current deadline of December 19. However, it should be noted that the decision is still in the draft stage and could be revised.

This is not Liberty Media's first foray into motorsports. The company purchased Formula One for 4.4 billion dollars in 2016 from a consortium led by CVC Capital Partners. More recently, last month, Liberty Media announced plans to separate the majority of its assets while stating it would retain its investments in Formula One and other related sports. This move is part of the company's strategy to focus on motorsports.

At the time of this article, Liberty Media had not yet responded to the potential EU investigation.