Liberty Media, which owns a series of media, communications and entertainment businesses, said late Wednesday that it has agreed to acquire motorsports company Formula One for $8 billion from a consortium of sellers.
Liberty will acquire 100% of Delta Topco, the parent of Formula One, using shares of its tracking stock, which falls under the LMCK ticker, Liberty said in a statement. Concurrently, Liberty acquired 18.7% of Formula One for $746 million in cash.
Stockholders on the sell side will receive $1.1 billion cash, 138 million newly issued shares of LMCK stock, and $351 million in exchangeable debt instruments issued by Formula One that can be converted into LMCK shares, said Liberty, which will fund the cash portion with on-hand capital.
Upon completion of the full acquisition, Liberty Media said it will own Formula One, which will be renamed Formula One Group, though the consortium of sellers, led by CVC Group, will own 65% of its equity and will have representation on Formula One’s board.
Upon completion of the acquisition, the Liberty Media Group will be renamed the Formula One Group and the ticker symbols for the Series A, Series B and Series C Liberty Media Group tracking stocks will be changed from LMCA, LMCB and LMCK to FWONA, FWONB and FWONK, respectively. Formula One will remain based in London.
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