EU Scrutinizes Liberty Media's €4.2B MotoGP Deal

Liberty Media's plan to acquire an 86% stake in Dorna Sports, the rights holder of MotoGP, for €4.2 billion is under scrutiny by the European Union's antitrust regulators due to potential anti-competitive effects, especially in broadcasting and streaming sectors. The EU's new antitrust chief, Teresa Ribera, is leading the investigation, focusing on the potential market disruption from consolidating major motorsport entities under one corporate umbrella. The EU has announced a 'Phase 2' investigation set to begin by December 19, potentially extending the review process by 90 working days. Liberty Media, which has sold an $825 million stake in Formula 1 to fund the purchase, remains optimistic about addressing regulatory concerns. The scrutiny echoes a similar situation in 2006 when CVC Capital Partners faced regulatory demands during its acquisition of Formula 1, and Liberty Media continues to engage with the EU, hoping the Commission will recognize the dynamic nature of the market.