Formula 1 to be bought by US-based Liberty Media Group

Formula 1 will be taken over by the US-based Liberty Media Group. This announcement was officially made by the media firm, ending years of speculations about the future ownership of the world's most popular motor-racing championship.

Speculations about F1's sale started in October last year, when Formula 1 boss and Chief Executive, Bernie Ecclestone, revealed that Formula 1's current controlling firm, CVC Capital was keen on making an exit. Ecclestone had a 5.3 percent stake in the sport, while CVC controlled 35.5 percent. Eventually, Liberty Media came out as the highest bidder for CVC's share.

The takeover deal, valued at $4.4 billion, is being touted as one of the biggest transaction deals in sports history. The deal has valued Formula 1 at $8 billion, but also includes $4.1 billion worth of debts.

Initially, Liberty Media will just be buying a minority stake in Formula 1. The full takeover will be initiated only after getting regulatory clearance.

Despite the change in controlling body, Bernie Ecclestone will continue to be the Chief Executive of the sport. Meanwhile, the position of Chairman will now be taken by Chase Carey, vice-chairman of 21st Century Fox.

Source: BBC