By Adam Tate, Associate Editor
Liberty Media has announced an agreement with third party investors to raise $1.55 billion dollars in order to move forward with their plan to purchase Formula One from CVC Capital Partners.
They are raising the funds through newly issues shares of their stock with the price set at $25 per share. The official release from Liberty is strewn with legal jargon, but the basic gist is that the capital raised from selling the shares will ensure the initial deal they signed with CVC for a full $8 billion will be fulfilled in order for them to complete the acquisition of Formula One in early 2017.
Greg Maffei, Liberty Media President and CEO said, “We are excited that this impressive list of investors will participate in the acquisition of Formula One. This group shares our enthusiasm for the sport and our belief in the opportunity to develop and grow it for the benefit of the fans, teams, sponsors and our shareholders.”
Newly minted Formula One Chairman Chase Carey enthusiastically proclaimed the deal as a sign that Liberty’s shareholders were behind the company’s goals for Formula One. “This is a significant step in Liberty Media’s transformative acquisition of Formula 1 and is further confirmation that the future of the sport is bright.”
If you ever dreamed of being a Formula One owner, act fast and buy some shares, they are sure to sell out quickly.