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Liberty Global Gains Controlling Interest in Formula E After Buying Stake in Racing League From Warner Bros. Discovery

Brendan Kelly
·2 min read

Liberty Global is buying a stake of Formula E from Warner Bros. Discovery, giving the media company controlling interest in the all-electric version of the motorsport.

A publicly traded company led by billionaire John Malone, Liberty Global announced Thursday it is in the process of acquiring WBD’s 25% equity in Formula E, which is in its 10th racing season. The deal means Liberty will own 65% of Formula E. The purchase price of the Warner shares isn’t disclosed, Variety‘s sibling brand Sportico reported.

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In a 2021 filing, WBD said its quarter ownership of the circuit was worth $65 million, though that is almost certainly the value of the company’s initial investment in the league, since the filing noted a current fair value wasn’t readily available. A 2023 U.K. regulatory filing by Formula E Operations, which manages the races, showed revenue of €181.5 million and a net loss of €15.3 million in the year ending September 2022 — about $202 million and $17 million, respectively, at that month’s exchange rate.

The deal means two Formula circuits — Formula 1 and Formula E — are now under Malone’s umbrella of Liberty entities. Liberty Media, a separate publicly traded business, owns Formula 1. Malone, who founded Liberty, controls about 31% of Liberty Global and most of Liberty Media, although an agreement limits Malone’s power to slightly less than half of Liberty Media’ s voting power, according to SEC filings. He is chairman of the board of both companies.

Other owners of Formula E include CMC Capital, a Chinese private equity fund which holds 10% according to data compiled S&P Global Market Intelligence; Saudi Arabia sovereign wealth fund PIF, which owns 5% of the league; and undisclosed stakes held by SECA Shanghai Sports and Driven Lifestyle Group, according to S&P. One of the teams that races in Formula E is owned by Jay Penske, CEO of Penske Media Corporation, which also owns Sportico and Variety.

While WBD is exiting ownership of Formula E, the media company continues to have a relationship with the league. In January it inked a 10-year agreement to broadcast F-E races on its various European networks.

Regulatory approval for the transaction is expected by year’s end, according to a press release.

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