In a significant move for Formula E, Liberty Global Ltd. has announced the acquisition of shares from Warner Bros. Discovery. This elevates Liberty Global’s ownership to 65%, granting it controlling interest in the all-electric racing series.
Major Owner of Formula E Revealed
While the financial details of this Formula E deal remain undisclosed. Liberty Global has indicated that a formal announcement will be made by the end of the year. The deal is still pending approval, but there are no indications of any issues.
Mike Fries, CEO of Liberty Global, said:
“We’re excited to take a controlling interest in Formula E, a business we first invested in nearly 10 years ago.”
“Formula E has a massive potential for further growth while integrating the most advanced sustainability standards in sports. The investment continues our approach of disciplined capital rotation across our Ventures portfolio and our strategy of making long-term investments in highly attractive businesses.”
Formula E is currently in its tenth season and has just introduced its plans for a GEN3 Evo car at the Monaco E-Prix. The new car is a significant upgrade to the series, boasting 0–60 mph acceleration capabilities that surpass the current Formula 1 car.
The series had unveiled other changes, including a calendar change, shifting their U.S. race from Portland, Oregon, to Homestead Raceway in Miami in 2025.
Warner Bros Discovery’s Ventures
Warner Bros. Discovery, on the other hand, has been reevaluating its portfolio of sports properties. They are actively negotiating to retain a portion of the NBA media rights on TNT. However, they are getting fierce competition from other media conglomerates like Disney, Amazon, and NBC Universal, who have all recently secured deals with the league.
Jeff Dodds, CEO of Formula E, said: “First I’d like to offer my thanks to Warner Bros. Discovery for the support and guidance they’ve provided Formula E over the past nine years. Liberty Global have a proven track record of building and growing businesses and their investment in us comes at the perfect time as we plan for a period of exponential growth.”
“Having personally known and worked alongside the Liberty leadership team for over a decade, I’m thrilled to be able to further benefit from their expertise and their resources. This is a powerful vindication of the huge potential of our sport.”
Analysis
It means greater investment into the sport from Liberty Global. This, along with their multi-year partnership with Saudi Arabia’s Public Investment Fund, will aid in the electric series’ growth. The financial backing ensures greater stability and resources for Formula E, and we can expect continued, uninterrupted technological advancements and the debut of the GEN4 car in Season 11. This further enhances the series’ competitive edge and its appeal to top-tier teams and drivers. These technological advancements can also make their way from the track to the road.
With Liberty Global at the helm, Formula E can leverage enhanced marketing and media strategies to grow its fan base. The current Formula E fanbase is said to be around 344 million fans. However, as with every acquisition and changeover, there is a concern that the sport’s core aims may be overshadowed by commercial interests.
Sustainability must remain
Formula E has always been more than just a racing series. It is a series that is committed to sustainability while also aiming to build a community at the existing race venues they visit. These initiatives are crucial for maintaining the sport’s identity and aligning with global environmental goals.
The calendar changes and such a massive acquisition grow concern that the focus might shift toward maximizing profits. Which is something that could expand the series’ global footprint at the expense of its sustainability goals.
Liberty Global must balance its business objectives with the sport’s commitment to the environment and community building. To mitigate such concerns, the entity needs to be transparent, continue investing in Formula E’s sustainability projects, and maintain a community-focused approach. This transparency can also help reassure fans and stakeholders that the series remains true to its original notion.
The series has led by example in the past, as it became the first motorsport and major sport in the world to achieve net-zero carbon, a standard that ought to be maintained and perhaps enriched by this major acquisition.
