Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has reportedly expressed an interest in purchasing the global racing series, Formula 1, from Liberty Media. According to a recent report from Bloomberg, the PIF valued the motor racing series at well above $20 billion, including debt.
Liberty Media’s Stance
Liberty Media acquired Formula 1 in 2017 for $4.4 billion and has not indicated any interest in selling. Nonetheless, the PIF reportedly remains interested and could be a formidable suitor for F1 if Liberty Media changes its stance.
The stock tracking Liberty Media’s Formula 1 assets saw a 6.9% increase in early trading on Friday and has more than doubled in value since the beginning of 2019. The stock’s current market capitalization stands at $30.2 billion.
Formula 1 began racing in Jeddah, Saudi Arabia in 2021 and the third race at the city is scheduled for March 19. Despite this, Mercedes driver Lewis Hamilton has been vocal about the country’s human rights record.
The PIF’s interest in Formula 1 could eventually lead to Saudi Arabia owning the motor racing series. However, Liberty Media would have to reverse its stance for that to happen.
The stock tracking Liberty Media’s Formula 1 assets have seen a steady increase in value in recent months, and the Saudi Arabian-hosted race in Jeddah is scheduled for March 19.
Despite the investment opportunities, Mercedes driver Lewis Hamilton has spoken out against Saudi Arabia’s human rights record.
Source : frontofficesports.com