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China Media Capital set to buyout F1 for $8.5bn

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China Media Capital set to buyout F1 for $8.5bn

China Media Capital set to buyout F1 for $8.5bn

According to a Sky News report on Friday, China Media Capital (CMC) is leading a group of Chinese firms to back a $8.5bn takeover bid for Formula 1 within the next 90 days.

The bidders are one of China’s most largest investment firms, willing to invest roughly $1.5 billion in the offer being assembled by Stephen Ross, owner of the Miami Dolphins, a professional American football team, reported Xinhua citing Sky News.

The proposed takeover of F1, which remains far from certain to take place, still requires roughly $2 billion in additional equity from other investors.

CVC has not yet decided whether to grant the exclusivity request, insiders said.

Sky News understands that Qatar Sports Investments, which owns the Paris Saint-Germain football team and had been tipped as a partner of Mr Ross, is now on the periphery of the deal and may not participate at all.

Sources said that Mr Ross’s vehicle, RSE Ventures, plans to invest approximately $500m (£323m) to buy a significant shareholding in F1’s parent company.

Sources said that Mr Ross’s vehicle, RSE Ventures, plans to invest approximately $500m (£323m) to buy a significant shareholding in F1’s parent company.

“They believe they can double F1’s profits,” said a source close to the bid.

CVC, F1’s majority shareholder since 2005 are set to respond to the consortium’s proposals very soon, but right now they have declined to comment.

One uncertainty facing the sport is the outcome of a complaint submitted recently by two of the smaller teams – Force India and Sauber – to the European Commission about the way prize money is distributed.

Chinese investors are pursuing rapid global expansion in sports and entertainment business. CMC is among a group of Chinese media investors, which also include Fosun and Wanda, recently unveiled a partnership with the Hollywood studio Warner Bros Entertainment to produce Chinese-language films for distribution around the world.

Following the Qatar and NFL owner £5bn bid in last June, F1 boss Bernie Ecclestone told Media “three or four” bidders had emerged to open talks with Donald Mackenzie, CVC’s chairman.

“I have no idea whether any of these people have got closer with this, but CVC are in the business of buying and selling companies. They are very happy with F1 and Donald is not an enthusiastic seller, but their business is selling everything has a price,” Ecclestone said.

Now the Chinese investors clinch pole position with (£5.5bn) for F1 Future!

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