John Malone, the ‘king of the cable tv’, takes the wheel of the Formula1

John Malone, head of Liberty Media. AFP Reuters-Quality

The Formula 1 has a new pattern. The american tycoon John Malone, known in the telecommunications industry as the King of Cable Tv, just starring in a transaction valued in total, between equity and debt, by 8,500 million dollars (7.550 million euros), which will be with the control of the greater competition in the motor world. Bernie Ecclestone manages to remain at the forefront of the management, even though it will be guarded well.

The Formula 1 is one of the brands most iconic in the sport. Malone is going to shell out the equivalent of 4,400 million, so it's between the properties of Liberty Media. But the businessman is also known for being a great opportunist. Ecclestone is not being able to make him reconcile accounts, despite the passions that generate their fireballs and this made him an easy prey.
The business of Formula One is controlled since 2006 by a consortium of investors led by CVC Capital. The fund, however, began to reduce positions six years later, after failing his plan to take the company on the Stock exchange in Singapore. The placement was frustrated by the instability in the financial markets and the legal problems of Ecclestone.

The name of Malone leads resonating through the circuit since then. Liberty Media already was almost two years ago to take 49% of the capital. After it was speculated that he was going to snatch the rights to SkyTV in Europe to be able to raise advertising income. The agreement, therefore, gives you a active very precious in the race that have the means to build its own content.

The fusion is done in two phases. At the beginning, the media group of Malone controls 18.7% of the capital after disbursing 1,100 million. To pay for them they will come off of investments in Viacom and Live Nation Entertaiment. The second step you need to the approved by the shareholders, because it requires the issuance of new shares that will be used by its division of live events to culminate the takeover, the value of other 3,300 million dollars. The transaction will be completed in early 2017. At that time would also 4.100 million of debt.

Ecclestone remains

Bernie Ecclestone will be devoted to the negotiation with circuits and television companies. John Malone, however, wants to bring fresh blood to change the fortunes of the business. To do this appointed Chase Carey as chairman of the board of Formula One Group.

The also executive vice president of 21st Century Fox is one of the most respected figures in the world of entertainment and knows the interests that move in the sport. The Formula One has the challenge of attracting more young audience, for which they must work in social media.

John Malone could use the operation also to put more weight in the US, in this quest for generating more cash. The grand prix returned to the calendar in 2012, after several years of absence. Ecclestone sought to expand the series in the continent, with a career in the New York metropolitan area additional to that which is held in Austin. At the same time, focused on Asia in order to grow.
Share on Google Plus

About Igor Kocic

0 коментара:

Post a Comment