Liberty Media Corporation (FWON.K): U.S. Media Rights Renewal & acquisition of MotoGP as the Game Changing Catalysts—Will It Redefine the Competitive Edge?

Liberty Media Corporation (FWON.K) delivered a robust Q3 2024, with adjusted EPS of $0.40 exceeding estimates by $0.21, supported by strong performance from the Formula One Group (F1), while revenue of $911M fell slightly short by $0.39M. F1 showcased resilience with year-to-date revenue growth of 15% and adjusted OIBDA climbing 21%, driven by disciplined cost management, a 140-bps margin expansion to 25.8%, and double-digit growth across revenue streams like sponsorship and media rights. The acquisition of MotoGP for $1 billion is set to close by year-end, diversifying Liberty’s motorsport portfolio and generating cross-platform synergies with F1, while 9% YTD MotoGP attendance growth underscores strong demand fundamentals. Strategic initiatives such as the planned Split-Off of Liberty Live Group aim to simplify the capital structure, unlocking shareholder value through tax-efficient restructuring and focused growth opportunities in motorsports and live entertainment. Near-term headwinds, including ticket pricing softness at the Las Vegas Grand Prix and sponsorship revenue timing effects, are mitigated by proactive cost optimization and LVGP’s broader ecosystem benefits, including marquee deals with LVMH. Liberty’s solid financial positioning, with $2.7 billion in attributed cash and a net leverage ratio of 1.1x at F1, supports growth initiatives like MotoGP integration and the upcoming U.S. media rights renegotiation in 2025. With F1’s growing U.S. fanbase and strategic calendar expansions, Liberty Media is well-positioned for multi-year compounding growth. Can Liberty’s execution on MotoGP integration and U.S. media rights renewal solidify its leadership and unlock sustainable competitive advantages across its ecosystem?