The European Fee introduced on Thursday that it’s going to examine Formulation One proprietor Liberty Media’s €3.5 billion euro deal for the motorbike racing league MotoGP World Championship, because the deal dangers elevating costs for the licensing of broadcasting rights for motorsport occasions of each manufacturers.
The merger of householders of Formulation One with motorbike Grand Prix (MotoGP), the largest collection of bike street racing occasions, might hurt competitors within the broadcasting sector, the European Fee has present in a primary section of investigation launched after the deal was notified to the EU enforcer mid-November.
“By buying Dorna Sports activities, Liberty Media would maintain the business rights to 2 of the most well-liked motorsports in Europe: Formulation One and MotoGP. We have to extra rigorously assess whether or not this acquisition might negatively have an effect on European broadcasters, for instance by way of elevated license charges,” Competitors Commissioner Teresa Ribera mentioned in an announcement.
US-based firm Liberty Media introduced in April a takeover of MotoGP’s dad or mum firm Dorna valuing the world’s main motorbike racing championship at €4.2 billion, with an fairness worth of the deal of €3.5 billion.
Nonetheless, the Fee deemed that there’s a danger of Liberty abusing its dominance by proudly owning each Formulation One and MotoGP.
Liberty holds the unique business rights for the FIA Formulation One World Championship, whereas Dorna Sports activities holds unique business rights for the FIM World Championship Grand Prix (“MotoGP”) in addition to different motorbike racing championships.
Formulation One and MotoGP being shut opponents, the EU enforcer is worried that the transaction would possibly have an effect on competitors on nationwide markets for the licensing of broadcasting rights for motorsports content material and in wider nationwide markets for the licensing of broadcasting rights for all sports activities content material.
The Fee has now 90 days to resolve whether or not the merger complies with EU merger guidelines.
The announcement comes as Liberty Media nurtures the ambition to increase MotoGP occasions to a wider viewers.
“The enterprise has important upside, and we intend to develop the game for MotoGP followers, groups, business companions and our shareholders,” Liberty Media CEO Greg Maffei mentioned in an announcement in April.
