Liberty Media turns down Saudi Public Investment Fund

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• Saudi Arabia's PIF valued F1 at over US$20bn

• Liberty Media bought the sport for US$4.4bn in 2017

Formula One owners Liberty Media have reportedly rejected an approach from Saudi Arabia's Public Investment Fund (PIF) to buy the series.

The PIF valued Formula One at more than US$20 billion, but Liberty Media is not currently interested in selling its increasingly profitable asset. The American media company originally bought the sport in 2017 for US$4.4 billion.

According to Bloomberg, the current market value of Formula One is around US$15.2 billion, highlighting the seriousness with which the bid from Saudi Arabia has to be taken.

The deal was explored last year but faltered early due to Liberty Media's stance on selling the property.

My Take…

Formula One is a sport with a long and storied history.

It has been around since the late 1920s, but it wasn't until fairly recently that it became popular with modern audiences.

Formula One is becoming increasingly focused on environmental goals, which seem to be at the forefront of everything the series does.

And yet, despite this commitment to sustainability, Formula One has received criticism from some quarters over its 'green' stance. Some people have argued that Formula One is simply trying to 'greenwash' its image by associating itself with environmentally friendly initiatives; others have even accused the series of being 'sport washing'.

At the very least, FIA President Mohammad Ben Sulayem’s tweet about the Saudi offer is curious, if not dangerous.

Liberty Media and others within F1 can’t be too happy to see this put out there.

And while Ben Sulayem claims that the offer is inflating the value of Formula 1, the series continues to expand its dealings with the country.

And it’s a no-brainer that Saudi Arabia is interested in purchasing Formula One.

The series has been pioneering the push towards sustainable fuel, and Saudi Arabia needs to make up for a reputation many give it as a dirty oil producer.

With Liberty Media fending off the Saudi’s opening salvo, I can’t imagine they’ll be able to turn down many more offers beyond this. After all, they are a business that reports to stockholders — most of which are more concerned about the bottom line than who owns Formula 1.

The Qualifier is a weekly newsletter that breaks down the business, money, and culture of Formula 1. Subscribers include investors, decision-makers, and casual fans. So if you are not a subscriber, sign up and join 40,000+ others who receive it directly in their inbox each week — it’s free.