Major development in Liberty Media’s bid to buy MotoGP

Liberty Media are reportedly set to secure important backing from the European Union to complete its purchase of MotoGP.

Reuters report that the EU will provide unconditional antitrust approval enabling the $3.8 billion (3.5 billion Euros) acquisition to go ahead.

Reuters cite “people with direct knowledge of the matter” as the source.

Liberty Media edge closer to MotoGP

Liberty Media - the United States-based owners of Formula 1 - announced that they had struck a deal to buy 86% of MotoGP a year ago.

The remaining 14% was to remain with Dorna.

The deal requires approval from the European Commission, which acts on behalf of the EU on matters around competition in business. Reuters report that the European Commission will pass through the deal.

July 1 is the deadline for the deal.

"There is a very large and growing market for audiovisual entertainment well beyond sports, and the transaction will enhance MotoGP's ability to compete in this highly competitive market," a Liberty Media spokesperson said.

Previously, the EU had warned that TV broadcast rights could increase in price because Liberty Media would hold the key to Formula 1 and MotoGP.

An investigation reportedly centred on whether John Malone (the largest shareholder in Liberty Media and US cable TV company Liberty Global) would have decisive influence over both companies, and whether he could shut out competitors.

This hurdle is now set to be cleared, according to Reuter’s latest report.