Liberty Media set to acquire Formula 1 for $8.4 billion

F1 chief executive Bernie Ecclestone has confirmed that Formula 1 is being sold to US Media Company Liberty Media. The deal is said to be worth $8.4 billion (INR 55,876 crore) and the announcement was made to German trade magazine Auto Motor Und Sport at the Italian Grand Prix in Monza on Saturday.

As per Ecclestone, Liberty Media will transfer the amount in two payments, the first being done on Tuesday while he also stated that it was yet unclear as to what role he would play once the deal was final.

As on date, Formula 1’s biggest shareholders are CVC Capital Partners with a 35.5% stake while US Fund Manager Waddell and Reed hold a 20.9% stake. Ecclestone holds 5.3% stake while his Bambino Trust holds another 8.5% stake.

Bernie Ecclestone had announced in March this year that Formula 1 was struggling. Drivers were not happy with the new set of rules and decision making processes. The sport is currently controlled by CVC while the sale will see Media Mogul Chase Carey as the new F1 Chairman.

With plans to acquire 100 percent stake in F1, it would then list F1 on the New York Stock Exchange. Chase will work along with Ecclestone while the change in ownership could see Ecclestone leave his position in Formula 1 with his 5.3% stake worth over $400 million.

Liberty Media was not the only company in talks to take over Formula 1 as others such as Qatar Sports Investments and Miami Dolphins American football team owned by Stephen Ross also considered buying.

This article first appeared on Rushlane.com