Liberty Global takes controlling stake in Formula E, expanding its motorsport portfolio

Liberty Global has announced the acquisition of a controlling stake in Formula E, the electric car racing world championship. The deal, which sees Liberty Global increase its ownership from 35% to 65%, comes after the purchase of Warner Bros Discovery's shares.

This move solidifies Liberty Global's position in the world of motorsport, as the company now controls a major championship nearing the end of its 10th season. Notably, Liberty Global's sister company, Liberty Media, is the commercial rights holder for the renowned Formula One series. Both companies are led by U.S. billionaire John Malone.

Despite the shared ownership, Liberty Global CEO Mike Fries assures that the two entities will operate independently, stating that, "This is a pivotal moment in Formula E," and highlighting the series' need for capital and commitment. He emphasises that Liberty Global intends to provide both, highlighting the series' "incredible trajectory" and "tailwinds" like growing fan base and technological advancements.

Formula E CEO Jeff Dodds echoed Fries' sentiments, emphasising the series' rapid growth and potential to challenge Formula One's dominance. He underscored the technological advantage of Formula E's Gen 3 car, which boasts a significantly faster acceleration than current Formula One vehicles.

Dodds also emphasised the cost-effectiveness of Formula E, with a capped budget of 13 million euros per team compared to Formula One's $140 million. This financial efficiency, coupled with its commitment to sustainability, positions Formula E as a compelling alternative for both teams and fans.