Liberty Media’s MotoGP Purchase Has Officially Been Delayed

Liberty Media was expected to wrap up its takeover of MotoGP some time in December, and therefore it would have realised its goal of achieving the purchase before the end of 2024.

But that has now been ruled out as an official investigation from the European Commission into the American’s firm’s purchase is underway. The investigation has been labelled as ‘Phase II’ and will delay the $4.2 billion acquisition that F1 owners Liberty Media had planned.

A detailed statement from the EU Commission was made to explain the reasons for why its now taken the decision to investigate Liberty Media, which could take up to 90 days before completion.

Alongside its ownership of F1, Liberty Media also owns the rights to the feeder series’, Formula 2 and Formula 3. The purchase of Dorna would see it take control of MotoGP with a share of 86 per cent, and within that would be ownership of World Superbikes and its feeder categories.

Last week reports emerged, suggesting that Liberty’s purchase of Dorna could be delayed due to an impending probe by the European Commission. Now confirmed, that probe will look into concerns that Liberty’s ownership of both F1 and MotoGP could have a monopoly-like effect on broadcasters due to an increase in costs of licensing.

The statement read: "The Commission's preliminary investigation indicates that the transaction may reduce competition between Liberty Media and Dorna Sports in the licensing of broadcasting rights for motorsports content.

"In particular, the transaction may remove important competitive constraints on Liberty Media and Dorna Sports, which may strengthen their position vis-à-vis broadcasters of motorsports content and could ultimately lead to higher prices. 

"More specifically, the Commission found that: The transaction raises serious competition concerns in potential narrow national markets for the licensing of broadcasting rights for motorsports content in the European Economic Area (‘EEA'), where Formula One is the clear market leader in all European countries and MotoGP is most often its only competitor.

“The transaction may remove important competitive constraints between the parties on some potential wider national markets for the licensing of broadcasting rights for all sports content or possible segments of such markets. In particular, this is because it appears that Formula One and MotoGP compete closely.

"The Commission will now carry out an in-depth investigation into the effects of the proposed transaction to determine whether its initial competition concerns are confirmed.

"During its in-depth investigation, the Commission will also further investigate whether Liberty Media's and Liberty Global's largest shareholder, Mr. John Malone, is able to exert decisive influence over both companies.

"If confirmed, the transaction could also give rise to concerns that Liberty Media may foreclose rival broadcasters in countries in which Liberty Global is active, namely in Belgium, Ireland and the Netherlands.

"The proposed transaction was notified to the Commission on 14 November 2024. The Commission now has 90 working days, until 14 May 2025, to make a decision. The opening of an in-depth inquiry does not prejudge the outcome of the investigation."

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