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EU Probes Liberty Media’s $3.8 Billion MotoGP Acquisition

By  |  December 12, 2024

Liberty Media Corp.’s $3.8 billion acquisition of the MotoGP World Championship is facing a detailed investigation by the European Union’s competition watchdog. The deal, which would bring together two major motorsport entities—Formula 1 and MotoGP—is under scrutiny for potential anti-competitive effects in broadcasting and streaming markets, according to sources familiar with the matter, as reported by Bloomberg.

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    The European Commission, led by antitrust chief Teresa Ribera, is particularly concerned that the merger could diminish competition by consolidating the power of two of the biggest names in motor racing under one corporate umbrella. The concerns center around the possible impact on media rights and content distribution, especially as both brands share overlapping fanbases and global broadcasting deals.

    As the deadline to decide on the probe approaches on December 19, the European Commission is preparing to launch a “Phase 2” investigation, which would involve a more comprehensive review of the deal’s potential market impact. While the decision is not yet final, sources suggest it could be confirmed soon. This step signifies a deeper inquiry, which typically adds around 90 working days to the review process. The Commission may also request additional information from Liberty Media, which could further extend the timeline.

    A spokesperson for Liberty Media stated that the company is continuing to engage constructively with EU regulators and remains hopeful that the Commission will recognize the “dynamic nature of the market” during its review. However, the European Commission has declined to comment on the matter.

    Liberty Media, the owner of Formula 1, is seeking to acquire Dorna Sports, the exclusive rights holder to MotoGP, through a combination of cash and shares in Liberty Formula One’s Series C stock. The move would place both of these premier motorsport brands under the same umbrella, raising concerns about the concentration of media rights in a single entity.

    Source: Bloomberg