Liberty Media’s ambitious $4 billion acquisition of MotoGP rights holder Dorna is facing a significant hurdle, with the European Union’s competition and monopolies commissioner reportedly preparing to launch a full-scale investigation into the deal. The acquisition, which would unite Formula 1 and MotoGP under a single corporate roof, now appears to be delayed as regulatory concerns take center stage.
Regulatory Red Flags Over Market Competition
Bloomberg reports that EU Commissioner Teresa Ribera, who recently assumed office, is poised to initiate a comprehensive “phase two” review of the proposed transaction. This extended investigation, focused on potential anti-competitive effects, particularly in the broadcasting and streaming sectors, signals a major obstacle for Liberty Media.
The commissioner’s scrutiny reflects broader concerns over the potential monopolistic influence that Liberty Media could wield by owning both of the world’s premier motorsport championships. Such ownership could drastically reshape broadcasting dynamics and limit competition within the industry.
Spain’s Influence and Ribera’s Keen Eye
Ribera, a former deputy prime minister of Spain, is reportedly well-acquainted with MotoGP’s cultural and commercial significance in her home country, where the series enjoys immense popularity. Her Spanish ties and awareness of Dorna’s importance are believed to be fueling the heightened scrutiny.
Liberty Media had initially submitted its paperwork to EU regulators last month, expecting a smooth and quick approval process. However, the anticipated December 19 deadline for feedback has now taken an unexpected turn with Ribera opting for a deeper dive into the potential ramifications of the acquisition.
A Flashback to CVC’s Challenges
This isn’t the first time MotoGP’s ownership structure has faced regulatory challenges. In the 2000s, F1’s then-owner, CVC Capital Partners, was forced to divest its stake in Dorna when EU regulators raised similar concerns about a single entity controlling both MotoGP and F1. CVC ultimately sold its MotoGP interests to Bridgepoint, MotoGP’s current majority owner, to facilitate its acquisition of F1 in 2006.
The echoes of those earlier challenges are unmistakable, with regulators once again focusing on preserving competition in motorsport and the broadcasting markets.
Liberty Media’s Response: Optimism Amid Uncertainty
A Liberty Media spokesperson told Bloomberg the company is “working constructively” with EU regulators to address their concerns and hopes they will recognize the “dynamic nature of the market.” Despite the delays, Liberty remains optimistic about the eventual approval of the acquisition.
The EU’s Brussels-based commission declined to comment, maintaining its typical discretion on ongoing investigations. However, insiders suggest the regulatory process could significantly postpone the deal, potentially into late 2025 or beyond.
A Deal in the Balance
For Liberty Media, the stakes are high. The acquisition would not only consolidate their motorsport portfolio but also create unprecedented opportunities for cross-promotion, marketing, and fan engagement across F1 and MotoGP. However, critics warn of the risks of monopolizing motorsport’s top-tier platforms, particularly in an era where streaming rights and global fan access are critical growth areas.
As Liberty Media awaits the EU’s formal announcement of the phase two investigation, the proposed merger hangs in the balance. With the potential for a long regulatory battle ahead, the future of MotoGP’s ownership—and its alignment with F1—remains uncertain.
What’s Next?
The detailed investigation could lead to conditions being imposed on the deal, similar to what happened with CVC in the 2000s. Alternatively, Liberty Media might be forced to adjust its plans or even abandon the acquisition altogether. For now, the motorsport world watches closely, knowing the outcome could reshape the industry for years to come.
