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US firm Liberty Media has confirmed it is buying the racing business Formula 1 for $4.4bn (£3.3bn).

The move ends years of speculation about the ownership of the company.

Bernie Ecclestone will remain as chief executive but Chase Carey, vice-chairman of 21st Century Fox, will become the new chairman.

Liberty Media has stakes in several sports and entertainment businesses, including the Atlanta Braves Major League Baseball club.

Owned by the billionaire John Malone, Liberty will initially purchase a minority stake in the world's leading motor-racing championship. A full takeover is planned if regulators approve the deal.

The total transaction values the firm at $8bn but includes $4.1bn worth of F1's debt.

Liberty Media is buying the stake from the private equity firm CVC Capital.

CVC has held a stake for the past decade but sold some of its holding in 2012.

It has been criticised for taking considerable profits from the sport, which has suffered from falling TV ratings in recent years.

Image copyright Getty Images Image caption F1 boss Bernie Ecclestone (right) talks to Red Bull team principal Christian Horner

Analysis: Dan Roan, BBC sports editor

This is one of the biggest deals in sports history and one of the most important moments in the history of F1.

Under overlord Bernie Ecclestone's long command - and the last decade of ownership by private equity group CVC - the motorsport series has enjoyed remarkable growth in terms of global popularity, profits and new races.

Liberty Media will hope to build on these strengths, helping the sport gain new fans, especially in the Americas, and to capitalise on new opportunities around marketing, promotion, digital rights and social media.

However, assuming European regulators approve the takeover, there are issues that the new US owners will need to address - the decline in appeal among younger audiences in an ultra-competitive sporting landscape, the rising costs to teams, fans and circuits, and the predictability of races.

Many inside the sport will be relieved to see the back of CVC, which has done very well out of its investment, and excited by the future. But this is also the beginning of the end of Mr Ecclestone's remarkable reign. Inevitably there will be uncertainty.

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"We are excited to become part of Formula 1," said Greg Maffei, chief executive of Liberty Media.

"We think our long-term perspective and expertise with media and sports assets will allow us to be good stewards of Formula 1 and benefit fans, teams and our shareholders."

Mr Ecclestone said: "I would like to welcome Liberty Media and Chase Carey to Formula 1 and I look forward to working with them."

Earlier, he said in an interview with Reuters that he had been asked to stay on for three years and would miss the Singapore Grand Prix on 18 September as he needed be in London for the negotiations.

The 85-year-old British businessman has run the sport for 40 years.</s>The sale of Formula One to Liberty Media has been agreed in a takeover which values the sport at $8bn.

John Malone, head of the entertainment and communications group, has purchased a controlling interest in the sport from CVC Capital.

Chase Carey, the executive vice-president of 21st Century Fox, has been appointed chairman of the Formula One Group, while Bernie Ecclestone, currently the chief executive, will remain in his position.

Liberty has paid $4.4bn for Formula One, initially for a 18.7% stake before acquiring the remainder on completion of the deal in 2017. CVC will remain shareholders but the voting shares that control the group will pass to Liberty. CVC has owned the sport since 2006, making a huge return on its initial investment of $2bn.

“The transaction price represents an enterprise value for Formula One of $8bn and an equity value of $4.4bn,” Liberty Media confirmed in a statement.

The income from the sale is likely to make F1 the most profitable deal in the investment house’s history. Much is expected of the new owners, with considerable emphasis on pushing the sport into new media and targeting new audiences.

The US-based company has clear intent not only to take advantage of Formula One’s ability to buck downward trends in financial returns but will also use its leverage as a media company to promote the sport and is likely to develop a new business model to back it.

Greg Maffei, the president and chief executive officer of Liberty Media, said: “We think our long-term perspective and expertise with media and sports assets will allow us to be good stewards of Formula One and benefit fans, teams and our shareholders. We are excited to become part of Formula One.”

The statement continued: “After completion of the acquisition Liberty Media will own Formula One and it will be attributed to the Liberty Media Group which will be renamed the Formula One Group.

“Chase Carey will serve as the new chairman of Formula One, succeeding Peter Brabeck-Letmathe, who will remain on Formula One’s board as a non-executive director. Bernie Ecclestone will remain Formula One’s CEO.”

The new owners have also included the option for allowing the F1 teams to participate in the new investment in the sport and said they will discuss the idea further with several that have expressed interest already.

Carey said he was looking forward to the “opportunity to help Formula One continue to develop and prosper for the benefit of the sport, fans, teams and investors alike.”

In the short term, however, Ecclestone, who has run Formula One as a fiefdom for 40 years, will be on hand to see through the takeover, having already said he was expecting to stay on for a further three years. In a statement he said: “I would like to welcome Liberty Media and Chase Carey to Formula One and I look forward to working with them.”

Ecclestone, who is now 85 years old, has largely handled the key tenets of F1’s financial success, which hinges on TV deals and the sale of rights to host races, himself. He likes to do business face to face and make deals that are both personal and private.

The sale of British broadcasting rights for the sport to Sky in 2011 was done and dusted before a bemused paddock had any idea of the deal.

It has been his negotiation of an escalator clause in new race contracts that has ensured the sport’s profits have beaten both inflation and recession in recent years. Having him on board to ensure the lucrative revenue stream that made Liberty’s purchase so attractive in the first place is an unsurprising move for the new owners.

How long they will stick with F1’s old guard in the new era remains to be seen.</s>Bernie Eccleston's reign over Formula One could be reaching the finish line after an American entertainment tycoon agreed to buy it in a deal worth £6 billion.

Liberty Media is buying 100 per cent of the shares of F1's parent company Delta Topco from the British private equity firm CVC Capital Partners.

Ecclestone, who has been part of Formula One ever since the 1950s, will remain as chief executive for three years but 21st Century Fox vice-chairman Chase Carey will become the new chairman.

Reluctant to delegate, Ecclestone has not groomed a successor and critics have accused him of holding back the sport through a failure to embrace fully new media or the digital marketplace, something Liberty is expected to make a priority.

The deal, which has an enterprise value of $8 billion US according to a company statement, heralds a new era for Formula One, a European-dominated sport that has long sought to break into the US market and win fresh audiences.

Liberty Media, which is owned by American media mogul John Malone, and its sister companies have interests that span from baseball's Atlanta Braves to Virgin Media, and Malone owns shares in ITV, Eurosport and Formula E.

Liberty Media president and chief executive Greg Maffei said: 'We are excited to become part of Formula One. We think our long-term perspective and expertise with media and sports assets will allow us to be good stewards of Formula One and benefit fans, teams and our shareholders.

'We look forward to working closely with Chase Carey and Bernie Ecclestone to support the next phase of growth for this hugely popular global sport.'

Ecclestone added: 'I would like to welcome Liberty Media and Chase Carey to Formula One and I look forward to working with them.'

On Wednesday he said: 'I will stay on as F1 chief executive'. 'I will continue to do all the things I have previously done, such as negotiate with the circuits, television companies and people like that.'

Liberty Media will initially acquire an 18.7 per cent minority stake before completing a full takeover if the deal is approved by regulators and the FIA.

Carey said: 'I am thrilled to take up the role of Chairman of Formula One and have the opportunity to work alongside Bernie 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.'

As a major investor in the internet, many observers expect Malone to move F1 more in that direction, which would not be difficult as Ecclestone has made no apologies about ignoring the digital revolution.

Liberty Media will also want to grow F1's presence in the United States, where it has traditionally struggled against home-grown alternatives, although the US Grand Prix in Austin has been a relative success.

And F1 fans should expect more innovations with gaming technology and virtual reality, as well as a much more coherent marketing effort with the drivers and teams. But the days of terrestrial broadcasters like the BBC, ITV or current domestic home Channel 4 providing free-to-air coverage on Sunday afternoons might be numbered.

Meanwhile, Ecclestone’s daughters are set to share a £500million windfall from the deal.

Heiresses Tamara Ecclestone, 32, and sister Petra Stunt, 27, are in line to pocket the eye-watering fortune as they are thought be the beneficiaries of a trust which owns an 8.5 per cent stake in F1.

Ecclestone has been widely credited with transforming F1 from something run by enthusiasts into one of the world’s richest sports generating £1.1billion sales annually.

A controversial figure, Ecclestone has held an iron grip over the sport and is known for playing rival teams off against each other.

On one occasion when they grouped together to challenge him, Mr Ecclestone said: ‘They think they have me by the balls but their hands aren’t big enough.’</s>The US company Liberty Media says it has agreed an $8bn deal to buy Formula One – with Bernie Ecclestone retaining his position as chief executive.

John Malone’s group has confirmed the deal after talks with CVC Capital Partners, which has controlled the sport for a decade.

Chase Carey, vice-chairman of 21st Century Fox, will become the new chairman.

“Liberty Media Corporation and CVC Capital Partners announced today that Liberty Media has agreed to acquire Formula One, the iconic global motorsports business, from a consortium of sellers led by CVC,” the statement read.

“Liberty Media owns interests in a broad range of media, communications and entertainment businesses. Those interests are attributed to three tracking stock groups: the Liberty SiriusXM Group, the Liberty Braves Group and the Liberty Media Group. The consideration comprises cash and newly issued shares in the Liberty Media Group tracking stock (LMCK) and a debt instrument exchangeable into shares of LMCK. The transaction price represents an enterprise value for Formula One of $8bn and an equity value of $4.4bn.

“The acquisition will be effected by Liberty Media acquiring 100% of the shares of Delta Topco, the parent company of Formula One (Delta Topco herein referred to as “Formula One”). The acquisition is subject to the satisfaction of certain conditions and is described in more detail below.

“Concurrent with the execution of the agreement to effect the acquisition, Liberty Media has completed the acquisition of an 18.7% minority stake in Formula One for $746m, funded entirely in cash (which is equal to $821m in consideration less a $75m discount to be repaid by Liberty Media to selling stockholders upon completion of the acquisition). Prior to completion CVC Funds will continue to be the controlling shareholder of Formula One.

“After completion of the acquisition Liberty Media will own Formula One and it will be attributed to the Liberty Media Group which will be renamed the Formula One Group. The consortium of sellers led by CVC will own approximately 65% of the Formula One Group’s equity and will have board representation at Formula One to support Liberty Media in continuing to develop the full potential of the sport. In addition, a CVC representative will be joining the Liberty Media Board of Directors.

“Chase Carey has been appointed by Delta Topco and will serve as the new chairman of Formula One, succeeding Peter Brabeck-Letmathe, who will remain on Formula One’s board as a non-executive director. Bernie Ecclestone will remain Formula One’s CEO.”

“I am thrilled to take up the role of chairman of Formula One and have the opportunity to work alongside Bernie Ecclestone, CVC and the Liberty Media team,” Chase Carey said.

“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.”

Ecclestone added: “I would like to welcome Liberty Media and Chase Carey to Formula One and I look forward to working with them.”

The statement also confirms that the deal is subject to consent from third parties including the FIA, F1’s governing body. The acquisition is “expected to close by the first quarter of 2017”.</s>Liberty Media has announced that it has agreed a deal to acquire Formula One in a deal worth 4.4bn US dollars (£3.3bn).

The American entertainment and media giant is buying 100 per cent of the shares of F1's parent company Delta Topco from the British private equity firm CVC Capital Partners.

Bernie Ecclestone will remain as chief executive but 21st Century Fox vice-chairman Chase Carey will become the new chairman.

Liberty Media, which is owned by American media mogul John Malone, and its sister companies have interests that span from baseball's Atlanta Braves to Virgin Media, and Malone owns shares in ITV, Eurosport and Formula E.

Liberty Media president and chief executive Greg Maffei said: "We are excited to become part of Formula One. We think our long-term perspective and expertise with media and sports assets will allow us to be good stewards of Formula One and benefit fans, teams and our shareholders.

"We look forward to working closely with Chase Carey and Bernie Ecclestone to support the next phase of growth for this hugely popular global sport."

Ecclestone added: "I would like to welcome Liberty Media and Chase Carey to Formula One and I look forward to working with them."

Liberty Media will initially acquire an 18.7% minority stake before completing a full takeover if the deal is approved by regulators and the FIA.

Carey said: "I am thrilled to take up the role of Chairman of Formula One and have the opportunity to work alongside Bernie 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."

As a major investor in the internet, many observers expect Malone to move F1 more in that direction, which would not be difficult as Ecclestone has made no apologies about ignoring the digital revolution.

Liberty Media will also want to grow F1's presence in the United States, where it has traditionally struggled against home-grown alternatives, although the US Grand Prix in Austin has been a relative success.

And F1 fans should expect more innovations with gaming technology and virtual reality, as well as a much more coherent marketing effort with the drivers and teams. But the days of terrestrial broadcasters like the BBC, ITV or current domestic home Channel 4 providing free-to-air coverage on Sunday afternoons might be numbered.</s>John Malone’s Liberty Media Corp. agreed to buy the company that controls Formula One from private-equity firm CVC Capital Partners Ltd. for $4.4 billion in cash, stock and convertible debt.

Liberty will hold an 18.7 percent stake in Formula 1 parent Delta Topco right away and will take full ownership as soon as the end of March, the Englewood-based company said Wednesday, citing an announcement from the companies. London-based CVC, largest shareholder in Delta Topco, will own 65 percent of Liberty Media Group, a unit of Liberty Media Corp. Malone will retain control of the company through voting shares.

Chase Carey, a former top executive at Rupert Murdoch’s media empire, will become chairman of Liberty Media Group, which will change its name to Formula One Group, Liberty said in a news release.

Liberty Media Corp. CEO Greg Maffei said in a call with investors that Liberty will pay $1.1 billion in cash and issue $3.3 billion in non-voting tracking stock to existing Formula One shareholders.

The deal, which includes the assumption of some Formula One debt, values the motorsports group at $8 billion.

The deal reflects a push by media companies to secure popular programming at a time when TV faces increasing competition from digital alternatives. Broadcasters and advertisers prize sports events like Formula One and English Premier League soccer because they continue to draw large live viewing audiences and have a growing global following.

While Formula One has struggled to crack the U.S. market, it generated $1.3 billion from television rights and other revenue sources including race-hosting fees in 2014, the most recent year available, according to filings at the U.K.’s Companies House. Liberty Global Plc, a London-listed sister company to Liberty Media, owns cable operator Virgin Media in the U.K. and other broadband and TV providers.

The deal would provide a windfall for CVC, which bought control of Formula One from lenders in 2006 for $2 billion and later sold stakes to BlackRock Inc. and Waddell & Reed Financial Inc.

Bernie Ecclestone, the British entrepreneur who founded Formula One in 1978 and built a global following through the sale of lucrative TV and advertising deals linked to Grand Prix races in dozens of countries, will remain chief executive officer, CNBC said.

Around the time of the 2006 sale, Ecclestone quelled a threat from Formula One teams to set up a rival car-racing series and his management involvement has continued since the CVC takeover.</s>Formula One is being bought by Liberty Media, a U.S. company that invests in entertainment and sports, in a takeover valuing the auto racing series at $8 billion.

Liberty Media, which is controlled by 75-year-old tycoon John Malone, has ended years of uncertainty about the ownership of the sport with Wednesday's deal .

The transition is expected to be overseen by F1 CEO Bernie Ecclestone, who told the Associated Press that he will retain his role as the sport enters a new era.

Liberty Media will be renamed Formula One Group after the deal is complete, which is expected by March 2017.</s>Bernie Ecclestone insisted he will carry on as chief executive of Formula One for at least three years as the £6billion takeover of the sport ploughed on.

He is never scared of a fight and, at 85, is refusing to give up his position as the paddock’s impresario. Despite having his power reduced, Ecclestone said he will work with new chairman Chase Carey, who will be installed by Liberty Media when they take over.

‘I will stay on as F1 chief executive,’ he said. ‘I will continue to do all the things I have previously done, such as negotiate with the circuits, television companies and people like that.

‘The good news is we will have someone on board in Chase, and he will hopefully be able to push F1 into new territories with social media. I have never found a way to make money from that.’

The deal is expected to go through — the money’s in the post — and Ecclestone will attend a board meeting on Tuesday rather than go to the Singapore Grand Prix.

There remain a few formalities to be observed. The sport’s governing body the FIA, who have a one per cent share in the sport’s commercial operation, have to give their assent. That is thought unlikely to be withheld, not least because they stand to make significant money.

Ecclestone’s power has been near-absolute for 40 years and he has seen off numerous coups, but he seems to accept this deal is going through. He confirmed the length of contract on offer to him when he said: ‘They want me to be here for three years.

‘There are certain things that are important to me: (Carey’s) connections in America with TV, which are good. There is also his connection with sponsors, the people he has been dealing with for years, which are also good, and finally social media, which again is good. This is all positive for the sport.’</s>London (AP) — Formula One is being bought by Liberty Media, a U.S. company that invests in entertainment and sports, for $4.4 billion.

Liberty Media Corp., which is controlled by 75-year-old tycoon John Malone, has ended years of uncertainty about the ownership of the auto racing series with Wednesday’s deal.

There will be continuity, with Bernie Ecclestone remaining the chief executive officer of F1. But the 85-year-old Ecclestone will have to work under a new chairman: Chase Carey, the executive vice chairman of Rupert Murdoch’s entertainment conglomerate 21st Century Fox.

Formula One has hundreds of millions of fans, and Carey said in a statement that he sees opportunity to develop it. In an interview, Ecclestone said he is optimistic Liberty has the resources, expertise and outlook to drive the growth of F1 — particularly in the United States.

Liberty said it has initially purchased a minority stake of 18.7 percent for $746 million. A buyout is expected to be completed by March 2017. F1’s biggest current shareholder, investment fund CVC Capital Partners, and the other sellers will still own 65 percent of Formula One Group stock, and retain board representation. But CVC, which first invested in F1 in 2005, is ceding control of the sport to Malone’s Liberty, which has all the voting shares.

The company says the deal values Formula One at $8 billion, including debt.

Malone, a U.S. cable-industry pioneer, has wide-ranging holdings in sports and entertainment. His Liberty Media also owns Major League Baseball team Atlanta Braves and has a controlling interest in radio company Sirius XM. Malone also controls European telecom company Liberty Global and has investments in U.S. cable company Charter, which recently bought Time Warner Cable, and various cable-TV companies.

“I hope they do a lot because they are American and have had dealings in television in America for a long time,” Ecclestone said of Liberty. “They have dealings with a lot of sponsors because of their TV networks and social media which we haven’t done (as much) in the past.”

The sport returned to the U.S. in 2012 after a five-year absence, with Austin hosting the race under the current deals.

“I am very, very happy that they can come in and do things (for the sport),” Ecclestone, the long-time F1 commercial chief, told The Associated Press. “I have been trying to do things in America for years but not very successfully … maybe they are the people that can get it done.”

Asked about challenging NASCAR’s supremacy in the U.S., Ecclestone said: “They are the people that should be concerned, of course.”

At the time of the sale, CVC had a 35.5 percent stake in F1, followed by U.S. fund manager Waddell & Reed with slightly more than 20 percent. Ecclestone has 5.3 percent stake in F1 but his family Bambino Trust has a further 8.5 percent, rounding up his involvement up to about 14 percent.</s>* Agreed to acquire Formula One from a consortium of sellers led by CVC capital partners

* Transaction price represents enterprise value for Formula One of $8.0 billion

* Initial sale of 18.7 percent minority stake in Formula One, with 100 percent sale subject to satisfaction of conditions

* Acquisition will be effected by liberty media acquiring 100 percent of shares of Delta Topco, parent company of Formula One

* Transaction price represents an equity value of $4.4 billion

* Liberty Media Corp says Bernie Ecclestone will remain formula one's CEO

* Prior to completion, CVC funds will continue to be controlling shareholder of Formula One

* Upon completion of acquisition, Liberty Media Group will be renamed Formula One Group

* Formula One will remain based in London

* Liberty Media Corp says funding for cash component of acquisition is expected to come from cash on hand at Liberty Media Group

* Ticker symbols for series A, series B and series C Liberty Media Group tracking stocks will be changed from LMC (A/B/K) respectively

* Selling stockholders will get $1.1 billion in cash, 138 million newly issued shares of LMCK and a $351 million exchangeable debt instrument Source text for Eikon: Further company coverage:
Liberty Media confirms it is buying Formula One for US$4.4 billion; however, Bernie Ecclestone will remain as chief executive.