Liberty Global recently vested the shares of Warner Bros Discovery becoming with 65%, the majority shareholder of Formula E. A move that has led fans of Formula 1, currently managed by Liberty Media, to wonder if the two categories will merge under one roof of a single property.
Liberty Global to acquire Warner Bros Discovery's shares in Formula E
The 100% electric category is destined to change hands. Liberty Global, after investing in Formula E 10 years ago, announced the acquisition of the shares held by Warner Bros. Discovery, bringing its shareholding to 65%. A share sufficient to take control of the electric championship now in its tenth season. The announcement comes at a time of great growth for the category which has planned a calendar of 11 stages for the 17th season, with a double appointment in Monaco and a new stage in Miami.
Jeff Dodds, Formula E's chief executive, stressed that investment to further grow Formula E will focus on car technology, the expanding calendar and the promotion of the series. “We are on the verge of unlocking this exponential growth. For this reason, having such a convinced investor like Liberty Global that supports us at a time when we are increasing our presence, we are investing in technology and we are investing in the next generation is absolutely critical.”
Also speaking on the growth opportunities and prospects was Mike Fries, CEO of Liberty Global, who said: “We are thrilled to acquire a controlling stake in Formula E, a company we first invested in almost ten years ago . Formula E has enormous potential for further growth while integrating the most advanced sustainability standards in the sport. The investment continues our approach of disciplined capital rotation in our Ventures portfolio and our strategy of making long-term investments in highly attractive businesses.”
Formula 1 and Formula E won't actually be under the same roof
The acquisition has generated some confusion, particularly over the link between Liberty Global and Liberty Media, which owns Formula 1 and, soon, MotoGP. Liberty Global controls some telephone and television operators and was born in 2005 from the merger of the international branch of Liberty Media and UnitedGlobalCom (UGC). While they share the same chairman of the board, John C. Malone who holds 30.2% ownership, and a member of the board of directors, the two companies operate as independent entities, each with its own strategy and focus.
In conclusion, the acquisition by Liberty Global marks a crucial moment for Formula E, promising a future of sustainable growth and technological innovation, whilst maintaining its identity and autonomy from Formula 1 and Liberty Media.
