Liberty Media’s acquisition of Dorna Sports is being investigated for possible monopolization of the sector
The EU (European Union) governing body has launched an investigation into Liberty Media’s acquisition of Dorna Sports. Dorna is the promoter of MotoGP and other motorcycling championships. Liberty Media, a subsidiary of Liberty Global, owns Formula 1.
The research will assess the impact of this acquisition on the competitiveness of motorsports broadcasting rights contracts. The information was released by Sportcal on Friday (Dec 20, 2024).
The concern arises because F1 dominates the motorsports market in many European countries, with MotoGP being its main competitor. The European Commission fears that the acquisition could monopolize this niche. This could “eliminate important competitive restrictions and lead to an increase in broadcast rights prices”according to the Commission.
On April 1, 2024, Liberty Media announced the purchase of 86% of Dorna. MotoGP was valued at €4.2 billion in enterprise value and €3.5 billion in capital value. The expectation was to complete the transaction by the end of 2024. However, completion can now be delayed until May 14, 2025. This is the deadline for the European Commission’s decision on intervention in the transaction.
The investigation will also address the influence of John Malone, Liberty Media’s largest shareholder and owner of Liberty Global. There is an analysis of whether Malone will be able to exercise a “decisive influence” about both companies. Specifically, whether Liberty Media could “delete” competing broadcasters in areas where Liberty Global operates with F1.
If approved, Dorna will continue to operate in Spain as a separate entity, with Carmelo Ezpeleta remaining as CEO.
