Liberty Global has secured a controlling 65% stake in the Formula E electric car racing world championship by buying out Warner Bros Discovery, the series announced on Thursday.
This acquisition places Liberty Global in control of the FIA-sanctioned championship, now nearing the end of its 10th season. Previously, the telecoms company held about 35% of the shares. Financial terms of the deal were not disclosed.
Despite Liberty Global’s new control over Formula E, Liberty Media remains the commercial rights holder for the larger and older Formula One series. Both companies are chaired by US billionaire John Malone. Additionally, Liberty Media announced in April a pending takeover of the MotoGP motorcycle world championship, pending anti-trust clearance.
Mike Fries, CEO of Liberty Global, emphasized the distinction between the two companies and dismissed concerns over common ownership. Fries highlighted the series’ impressive growth, citing the improved performance of the cars, the quality of the teams, the expansive race calendar, and the increasing fanbase.
Liberty Global plans to continue funding Formula E until it reaches break-even, which Fries believes is not far off.Recently, Formula E announced a 17-race calendar across 11 locations, featuring double-headers in Shanghai, Tokyo, Berlin, London, Monaco, and Saudi Arabia. The series boasts a global viewership of nearly 400 million.
Jeff Dodds, CEO of Formula E, explained that the remaining 35% stake is held by numerous small shareholders, including Saudi Arabia’s Public Investment Fund (PIF) with approximately 5%, and founder Alejandro Agag.Dodds expressed confidence in Formula E’s rapid growth, suggesting it could eventually rival Formula One’s dominance, driven by advances in technology.
Formula E’s cost cap of 13 million euros per team stands in stark contrast to Formula One’s 140 million dollar cap, highlighting the electric series’ efficient model.