Within the next few weeks, the London-listed private equity firm anticipates concluding a landmark transaction with Liberty Media or another purchaser.
The enduring proprietor of the Moto GP international motor-racing series is actively negotiating to transfer the company for over £3 billion.
Bridgepoint, the largest shareholder in Dorna Sports, the parent company of Moto GP, is negotiating with potential owners for a valuation of up to €4 billion (£3.4 billion).
Liberty Media, the proprietor of Formula One, is widely believed to be the leading candidate to acquire Dorna despite reportedly encountering opposition from several other suitors.
This past weekend, a source reported that Bridgepoint was attempting to reach a deal to sell Dorna within the next few weeks. Still, it cautioned that the process remained competitive and the deal’s timeline was uncertain.
They added that the final price might differ from the current €4 billion objective.
Amidst Bridgepoint’s 18-year stewardship, Moto GP has experienced a notable surge in profitability propelled by its commercial revenues and international expansion.
The private equity firm holds approximately 40% ownership interest in Dorna, whereas the Canada Pension Plan Investment Board (CPPIB) has a marginally lesser stake.
Doriana’s administration possesses the remaining shares.
The Moto GP World Championship for this year commences in Qatar the following weekend, one week after the initial race of the Formula One season in Bahrain, which takes place later on Saturday.
Consolidating Moto GP and F1 under a single ownership structure would allow Liberty Media to generate synergies in both finances and commerce.
A motorsport executive stated that should Liberty be successful in acquiring Dorna, it would likely attempt to replicate its success with Formula One in the United States.
Concerning a deal, a potential competition investigation would raise one concern.
Bridgepoint acquired Moto GP’s parent company from CVC Capital Partners in 2006 after the latter’s investment in Formula 1 attracted attention from European Union regulatory bodies.
The preponderance of CVC’s F1 ownership, acquired in collaboration with the sport’s veteran CEO Bernie Ecclestone, was valued at one of the highest in private equity.
In 2016, Liberty Media acquired it for $8 billion, valuing it as the most glamorous motorsport in the world.
Additionally, Bridgepoint’s ownership of Dorna has been extraordinarily profitable.
It reportedly assessed the company’s value at approximately €500 million in 2006, and six years later, it divested a stake in the company to CPPIB.
In 2019, a transaction involving the transfer of Bridgepoint’s stake from one of its funds to another reportedly assessed Dorna at €2.5 billion.
No one has yet discovered Liberty Media’s competitors in the race to acquire Dorna.
This week, the Spanish newspaper Expansion reported that Apple, Disney, and Netflix were also considering a transaction; however, this interest remained unconfirmed on Saturday.
Liberty Media did not state in response to a request for comment from Bridgepoint.
