Liberty Media’s MotoGP acquisition is currently under full-scale EU probe following concerns that its takeover might monopolize broadcasting and media distribution.
This investigation, spearheaded by the EU’s antitrust division under the leadership of Teresa Ribera arises from concerns that the merger could substantially reduce competition within the broadcasting and streaming markets.
Liberty Media’s MotoGP acquisition if successful will result to consolidation of two major motorsport brands—as the company also owns Formula 1—raising alarms among EU regulators regarding the implications for market dynamics and consumer choice.
This comes after the American corporation—which has been actively expanding its portfolio in motorsports—announced its intention to acquire about 86% of Dorna Sports—the parent company of MotoGP—back in April 2024.
Liberty Media’s MotoGP acquisition positions Dorna with an enterprise value of approximately €4.2 billion, highlighting the financial significance of this merger within the global sports landscape.
As the EU probe progresses, officials are reportedly preparing to escalate their scrutiny to a Phase 2 investigation by the deadline of December 19, 2024. This phase typically involves a more comprehensive review of the merger’s potential market impact and can extend the review process significantly.
While the decision to approve Liberty Media’s MotoGP acquisition is still in draft form and subject to revision, it indicates a serious commitment from EU regulators to assess the ramifications of this high-profile acquisition thoroughly.
Liberty Media’s previous acquisition of Formula 1 in 2016 for $4.4 billion has already established it as a dominant player in motorsports. However, the concerns surrounding this merger are not unfounded.
The potential overlap between the fanbases and broadcasting deals of Formula 1 and MotoGP could lead to monopolistic practices that limit competition in media rights and content distribution.
With both brands sharing huge audiences globally, there are fears that Liberty Media could leverage its control over both properties to dictate terms in ways that could disadvantage broadcasters and fans alike.
In light of these concerns, Liberty Media has expressed its intention to engage constructively with EU regulators throughout the review process. A company spokesperson stated that they remain optimistic that the Commission will recognize the dynamic nature of the market during its evaluation.
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The European Commission’s investigation is particularly pertinent given historical precedents. In 2006, CVC Capital Partners was forced to divest its interest in MotoGP when it acquired Formula 1 due to similar antitrust concerns.
The potential Liberty Media’s MotoGP acquisition comes at a time when the premier motorcycle racing series is experiencing notable growth. Year-to-date attendance figures have increased by approximately 9%, maintaining record levels achieved in previous seasons.
Financially, Liberty Media has taken steps to ensure that it can fund this acquisition effectively. Earlier this year, the company announced plans to sell an $825 million stake in Formula 1 to support its purchase of Dorna Sports.
The company has also indicated that Dorna will continue to operate independently under its current management structure, with CEO Carmelo Ezpeleta remaining at the helm post-acquisition 3.
