This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Malone Drives Formula One Talks With CVC

NEW YORK (The Deal) -- Cable billionaire John Malone has held talks with European private equity house CVC Capital Partners over the possible purchase of its 35% stake in racing business Formula One, according to a source familiar with the situation, and has also reportedly shown an interest in a further 14% of the company.

Whether the talks are ongoing or how far they have progressed since the initial approach was made around Christmas is not clear, but no formal offer has been made and CVC is still looking at alternative options.

CVC is the largest shareholder, despite its minority position, and has been looking for an exit opportunity for some time, either via a float or a sale. Reports on Tuesday said that a sale could value F1 at more than $9 billion, including debt.

CVC began preparations for an exit on the Singapore Stock Exchange in 2012, but a combination of poor markets and the legal troubles of F1 founder Bernie Ecclestone forced it to put the listing on ice.

Must Read: LivingSocial's Coupon is Set to be Punched by Amazon

CVC also sold part of its stake in 2012 to a consortium of U.S. asset managers Waddell & Reed Financial (WDR - Get Report) and BlackRock (BLK - Get Report) as well as Norges Bank Investment Management, the manager of the Norwegian government global pension fund. The sale reduced CVC's stake to below 50% and helped it recoup money invested in the business when it bought F1 for $3.5 billion in 2005 and 2006.

Altogether, CVC has reportedly made 5 times its $1 billion equity investment.

Any deal with Malone's Englewood, Colo.-based media empire would be a blow to longstanding rival Rupert Murdoch and his 21st Century Fox group, which has in the past taken an interest in the motor racing business and currently has the rights to broadcast F1 on a dedicated channel on its 39% owned British Sky Broadcasting.

In 2011, Murdoch made a joint approach with Italian investor Exor, a listed investment vehicle of the Agnelli family which has a historic stake in automaker Fiat and indirectly in the Ferrari F1 racing team.

A spokeswoman for 21st Century Fox declined to comment on a possible counter-approach to CVC or the possible implications for BskyB or its Sky Sports channels.

Malone, whose holdings include Liberty Global, Liberty Media (LMCA) and Discovery Communications, has been on a multibillion-dollar spree in Europe in the past two years, acquiring Britain's Virgin Media, Germany's Kabel  and, in the Netherlands, Ziggo.

Liberty Global spokesman Bert Holtkamp also declined to comment.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BLK $352.17 -0.99%
LMCA $19.04 1.38%
WDR $19.06 -2.95%
AAPL $94.19 -1.04%
FB $118.06 0.54%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs