ENGLEWOOD, Colo. - Liberty Media Corporation (NASDAQ:FWONA) (NASDAQ: FWONK), a diversified media and entertainment company, announced today a public offering of 10,650,000 shares of Series C Liberty Formula One Common Stock. The company also plans to provide underwriters an option to purchase up to an additional 1,597,500 shares.
The proceeds from this offering are earmarked to increase the cash consideration for the proposed acquisition of Dorna Sports, S.L., the commercial rights holder for the MotoGP motorcycle racing series. Liberty Media has stated that it will pay for the acquisition entirely in cash, opting not to issue any shares of FWONK to the sellers. The acquisition is anticipated to be finalized by the end of 2024.
In addition to funding the acquisition, the net proceeds from the stock offering will be used for general corporate purposes, which may include debt repayment. The completion of the stock offering is not contingent on the acquisition's finalization. Should the acquisition not proceed, the funds raised will be allocated for general corporate purposes within the Formula One Group tracking stock.
Goldman Sachs (NYSE:GS) & Co. LLC is serving as the sole underwriter for the offering. The offering is being made through a prospectus that is part of an effective registration statement filed with the Securities and Exchange Commission (SEC).
Liberty Media, through its tracking stock groups, holds interests in a variety of media, communications, and entertainment businesses. These include the Liberty SiriusXM Group, the Formula One Group, and the Liberty Live Group, with assets ranging from SiriusXM to Formula 1 and Live Nation, among others.
This press release contains forward-looking statements regarding the share offering and the MotoGP acquisition. These statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially.
The information in this article is based on a press release statement from Liberty Media Corporation.
In other recent news, Liberty Media Corporation reported its second-quarter results for 2024, revealing growth plans and strategic updates. The company is nearing the completion of its merger with SiriusXM, following approvals from the SEC and FCC. SiriusXM maintains a solid financial position, with consistent EBITDA and plans for future free cash flow growth. Also, the Formula One Group, a subsidiary of Liberty Media, reported a 29% increase in revenue and a 35% increase in OIBDA year-to-date, driven by successful partnerships and sponsorship deals. In other developments, the company's MotoGP acquisition is on track to close by year-end, with necessary regulatory filings already in place. Live Nation, another subsidiary, experienced a 5% rise in concert attendance and a 21% increase in AOI. Lastly, the Atlanta Braves continue to perform well with a 90% season ticket renewal rate for 2025. These are among the recent developments in the company's diverse portfolio, with all subsidiaries actively pursuing growth and experiencing positive outcomes. Citi reaffirmed its Buy rating on shares of Liberty Media Corp-Liberty Formula One, with a consistent price target of $77.00, following an update to their financial model.
InvestingPro Insights
Liberty Media Corporation (NASDAQ: FWONK) is navigating a pivotal period as it undertakes a significant stock offering to fund the acquisition of Dorna Sports, S.L. Real-time data from InvestingPro provides a snapshot of the company's financial health and market performance, which could be crucial for investors considering the stock offering.
InvestingPro Data indicates that Liberty Media has a market capitalization of $16.95 billion, reflecting the company's substantial size within the media and entertainment sector. The company's P/E ratio stands at 66.91, suggesting that investors are willing to pay a higher price for each dollar of FWONK's earnings, which aligns with the InvestingPro Tip highlighting that the company is trading at a high earnings multiple. This could signal market confidence in Liberty Media's future profitability and growth, despite the premium valuation.
Furthermore, the company's revenue for the last twelve months as of Q2 2024 is reported at $3.686 billion, with a notable revenue growth of 43.2%. This robust top-line growth is a positive sign for the company's financial trajectory and may underpin the strategic rationale behind the acquisition of Dorna Sports.
InvestingPro Tips provide additional context for investors. Analysts have revised their earnings expectations downwards for the upcoming period, which may warrant attention. However, the company's liquid assets surpass its short-term obligations, which indicates a healthy liquidity position that could support its operational needs and the planned acquisition. Additionally, Liberty Media operates with a moderate level of debt, which could be a stabilizing factor as it navigates this expansion.
For investors seeking a deeper analysis, there are more tips available on InvestingPro, including information on the company's valuation multiples and profitability predictions. As of now, InvestingPro lists a total of 12 additional tips for Liberty Media, which can be accessed through the InvestingPro platform to aid in making more informed investment decisions.
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