Bridgepoint, a private equity firm, recently made headlines by rejecting a bid from Ari Emanuel’s TKO Group for MotoGP. Surprisingly, the TKO offer was €200 million higher than what Formula One-owner Liberty Media had proposed for the motorcycle racing series.
TKO CEO Ari Emanuel expressed his bewilderment, stating, “We know that our bid was worth €200 million more than the Liberty bid.” However, Bridgepoint chose not to engage in a dispute over the value of the TKO offer and remained silent on the matter
Interestingly, a person close to the deal cited cultural compatibility as a reason for rejecting the TKO bid. Despite the financial advantage, Bridgepoint apparently considered TKO and Emanuel to be “culturally not a good fit”.
In response, a representative from TKO criticized Bridgepoint, asserting that by declining the higher offer, the private equity firm had failed in its fiduciary duty to both limited partners (LPs) and shareholders in the public market.
Liberty Media’s President and CEO opened up after the deal
Greg Maffei, Liberty Media’s President and CEO, expressed enthusiasm about expanding their portfolio of live sports and entertainment assets through the acquisition of MotoGP™. He emphasized the sport’s global appeal, captivating racing, and strong financial profile. The intention is to grow MotoGP™ for fans, teams, commercial partners, and shareholders worldwide.
As for the deal’s approval, Liberty Media is confident that regulatory clearance will be obtained, and they anticipate completing the acquisition by the end of 2024. The focus remains on keeping MotoGP™ independent and enhancing its fan base across the globe.
In related news, Emanuel’s Endeavor Group is going private at a value of $13 billion, with Silver Lake agreeing to buy Endeavor for $27.5 per share in cash. TKO, part of Endeavor, will continue to operate as a public company.
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