Dec 12 (Reuters) - The European Union is set to probe

Formula One owner Liberty Media's ( LLYVB ) 3.5 billion euro

($3.67 billion) deal for the motorcycle racing league MotoGP

World Championship, Bloomberg News reported on Thursday, citing

people familiar with the matter.

The new EU antitrust chief Teresa Ribera's team is worried

that the merger could stifle competition in broadcasting and

streaming sectors by bringing two major motorsports brands under

a single umbrella, the report said.

Liberty Media ( LLYVB ) did not immediately respond to a Reuters

request for comment.

The company said in April that it would acquire about 86% of

MotoGP's parent company Dorna, with Dorna management retaining

around 14% of its equity, giving the deal an enterprise value of

4.2 billion euros for Dorna/MotoGP and an equity value of 3.5

billion euros.

Officials are preparing to initiate a phase 2 investigation

by the current deadline of Dec. 19, the Bloomberg News report

said, adding that the decision is still in draft form and

subject to change.

Liberty Media ( LLYVB ) in 2016 struck a deal to buy Formula One from

a consortium of sellers led by CVC Capital Partners for $4.4

billion.

Last month, Liberty Media ( LLYVB ) announced the spinoff of most of

its assets, excluding Formula One and other related sports

investments, as it looks to sharpen focus on its motorsports

businesses.

Under the leadership of Chairman John Malone, Liberty Media ( LLYVB )

has acquired a wide network of media, communications and

entertainment business including a significant stake in U.S.

concert promoter Live Nation Entertainment ( LYV ).

($1 = 0.9528 euros)