North American media giant Liberty Media has confirmed that it has purchased the sport of Formula 1 in a deal worth $8 billion.

In a statement, the company confirmed that initially it will take an 18.7 per cent stake in F1 in a cash deal worth $746 million. Additionally, the executive vice president of 21st Century Fox, Chase Carey, will become the sport’s new chairman and will work alongside chief executive and commercial rights holder Bernie Ecclestone.

In this initial deal, CVC Capital Partners will maintain its majority stake in Formula 1 but subject to approval, Liberty Media will ultimately acquire 100 per cent of the shares of Delta Topco, the parent company of Formula One.

All up, the media company will invest $4.4 billion equity into Formula 1 while also assuming $4.1 billion of F1’s debt. All up, the sport’s enterprise value is expected to sit at $8 billion when the deal is finalized in the first quarter of 2017.

In a statement, new F1 chairman Chase Carey said “”I am thrilled to take up the role of Chairman of Formula One and have the opportunity to work alongsideBernie Ecclestone, CVC, and the Liberty Media team. I greatly admire Formula One as a unique global sports entertainment franchise attracting hundreds of millions of fans each season from all around the world. I see great opportunity to help Formula One continue to develop and prosper for the benefit of the sport, fans, teams and investors alike.”

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