MELBOURNE, AUSTRALIA – MARCH 17: Cars sit at the end of the pitlane as the grid waits to restart the weather delayed qualifying session for the Australian Formula One Grand Prix at the Albert Park Circuit on March 17, 2013 in Melbourne, Australia. (Photo by Mark Thompson/Getty Images)

Formula One will soon have a new owner, according to CNBC.

CNBC reported Wednesday afternoon that mass media giant Liberty Media is set to purchase Formula One at a total valuation of $4.4 billion. The deal comes after there were rumors that Apple might decide to purchase the racing organization.

According to the CNBC report, Liberty Media will hold a 18.7 percent minority stake immediately and then acquire the remainder of the company when the deal closes, which could be as soon as the first quarter of 2017. Liberty will pay $1.1 billion in cash and 138 million Liberty Media shares, plus $351 million worth of an exchangeable debt instrument to be issued by Formula One, and it will assume all $4.1 billion in Formula One’s current debt. CVC, the current largest shareholder of F1, will wind up holding around 65 per cent of the new company, which will eventually change its name to Formula One Group. However, they won’t have voting control, so Liberty’s leadership group will be in charge. As per Formula One itself, current CEO Bernie Ecclestone will stay in that position, but 21st Century Fox executive vice president Chase Carey will be named the company’s chairman.

Liberty Media has dipped its toes into sports previously. The group already owns the Atlanta Braves, and they have stakes in a number of other successful entities.

The U.S.-based company, which is controlled by Chairman John Malone, also has a 27 percent investment stake in Charter Communications, Inc., a 53 percent stake in Sirius XM Radio, Inc., and a 26 percent stake inLive Nation Entertainment Company, as well as smaller investments in Viacom, Time Warner, Sprint Corporation and Barnes & Noble, among others.

With the company’s vast resources, this seems to be a positive move for Formula One. This group appears to have money and isn’t afraid to use it, and their connections in the U.S. may help boost F1 further there. F1 has found lots of success globally, but has found the U.S. market tougher to crack; Liberty Media may be able to help them there. We’ll see what’s next for F1 following this.

[CNBC]

About Ryan Williamson

Ryan is a recent graduate of the University of Missouri and has recently returned to his Minnesota roots. He previously has worked for the Columbia Missourian, KFAN radio in Minneapolis and BringMeTheNews.com. Feel free to email me at rwilliamson29 AT Gmail dot com.