The EU is set to further investigate the acquisition of MotoGP by Formula 1 owner, Liberty Media. In April, it was revealed that the American media giant had acquired a majority stake in the motorcycle championship. However, the EU fears that one company may soon monopolize Europe’s largest motorsports. Liberty Media defended the acquisition in a recent statement.
In April, Liberty Media announced that it would acquire approximately 86 percent of MotoGP’s parent company, Dorna. The deal is reportedly worth around 4.2 billion euros. The European Commission, which enforces strict rules to ensure and promote fair competition, has announced it will further investigate the acquisition. The institution fears that if Formula 1 and MotoGP fall under one company, competition in the broadcasting and streaming sector could be unnecessarily stifled. A final decision should be made before May 14, 2025.
Liberty Media’s Statement
On Friday, Liberty Media released a statement about the investigation. “Liberty Media has received notification today from the European Commission that it will initiate an investigation into the previously announced acquisition of MotoGP,” the company responded. “We are confident that this transaction will benefit MotoGP activities, fans, viewers, and the broader motorcycle industry. Market parties have widely recognized the benefits of the transaction.”The market for audiovisual entertainment is continuously growing and extends far beyond just sports,” the message continued. “This acquisition will better enable MotoGP to compete in this highly competitive market. We continue to collaborate with the European Commission as they pursue their investigation, but at the same time, we are confident that this transaction should be approved.”
Liberty Media struck a deal in 2016 to take over Formula 1 from investment group CVC. The latter party once owned both Formula 1 and MotoGP, but was forced to sell one of these. Under the European rules of 2006, it was not allowed to own both racing classes at the same time.
