08:48 AM EDT, 04/01/2024 (MT Newswires) -- Liberty Media ( LLYVB ) (FWONA, FWONK) on Monday agreed to acquire Dorna Sports, the exclusive commercial rights holder to the MotoGP World Championship, in a deal with an enterprise value of about 4.2 billion euros ($4.53 billion).

The mass media company, which has ownership stakes in Formula One and Sirius XM (SIRI), will purchase an 86% interest in Dorna Sports from Bridgepoint and Canada Pension Plan Investment Board. The MotoGP parent company's management will retain the remaining 14% stake as part of the deal.

The acquisition adds the motorcycling sport of Grand Prix racing to Liberty Media's ( LLYVB ) portfolio of live sports franchises. Dorna Sports will operate as an independent company attributed to Liberty Media's ( LLYVB ) Formula One Group tracking stock, the companies said in separate statements.

The transaction has an equity value of 3.5 billion euros, which is expected to be comprised of about 65% in cash, 21% in Liberty Formula One series C shares (FWONK) and 14% of MotoGP equity, according to Liberty Media ( LLYVB ). The company plans to fund the cash part of the deal through a combination of cash and debt.

"We are thrilled to expand our portfolio of leading live sports and entertainment assets with the acquisition of MotoGP," Liberty Media ( LLYVB ) Chief Executive Greg Maffei said. MotoGP, which is scheduled to host 21 races in 17 countries this year, has a "highly cash flow generative financial profile" with "significant upside" to the business, according to Maffei.

The deal, which requires approval from competition and foreign investment law authorities in various jurisdictions, is anticipated to close by the end of 2024. MotoGP's existing debt balance is expected to remain in place after completion.

"This is the perfect next step in the evolution of MotoGP, and we are excited for what this milestone brings to Dorna, the MotoGP paddock and racing fans," said Dorna Sports CEO Carmelo Ezpeleta, who will continue to run the business. "Liberty has an incredible track record in developing sports assets and we could not wish for a better partner to expand MotoGP's fanbase around the world."