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Liberty Media Has No Intention to Americanize Formula One
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Liberty Media Corporation’s announcement of a deal to purchase Formula One has instilled fear in the minds of many Formula One fans, primarily Europeans, that the ownership by an American company will jeopardize the sport’s European foundations. However, the company has dismissed such speculations. Notably, U.S. has been the land of NASCAR and INDYCAR racing and Formula One hasn’t had a smooth in the nation. After the infamous 2005 United States Grand Prix in 2007, Formula One was to be pulled out of the U.S. However, the sport returned to a new circuit in Texas in 2012 and even has a U.S.-based team this season.
The Pressing Problems
Formula One has been expanding rapidly to newer places, with racing events in Baku, Azerbaijan and Sochi, Russia. However, the sport has been losing fans and viewership due to the predictability and boredom associated with the sport. Additionally, critics have voiced grudges against the stringent regulations governing the sport. However, since the new Formula One owner is a media company, we do expect Formula One to make an exciting comeback.
America– Opportunity for Formula One?
While Formula One has had a rough journey in the U.S., the entry of an American team is expected to reignite interest of Americans in the sport. Moreover, we do expect addition of a number of races in other parts of the country. This can even lead to increased participation of American teams in the sport. Thus, it is no surprise that Liberty Media sees vast opportunities for the sport in the country. Notably, the company has been vying for a 49% stake in Formula One in 2014 in collaboration with Discovery Communications Inc. .
The Bottom Line
Formula One is expected to face tough competition from NASCAR and Verizon Communications Inc. (VZ - Free Report) sponsored INDYCAR series in the U.S. However, boasting the highest class of auto racing in the world, Formula One is popular and followed globally not only by motorsports fans, but also by wealthy individuals. This makes the sport a great value proposition for pay-TV operators. Thus, Liberty Media can benefit from the buyout in the form of increased revenues. Additionally, Liberty Interactive Corporation’s subsidiaries like QVC can benefit from the online sales of Formula One related merchandise.
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Liberty Media Has No Intention to Americanize Formula One
Liberty Media Corporation’s announcement of a deal to purchase Formula One has instilled fear in the minds of many Formula One fans, primarily Europeans, that the ownership by an American company will jeopardize the sport’s European foundations. However, the company has dismissed such speculations. Notably, U.S. has been the land of NASCAR and INDYCAR racing and Formula One hasn’t had a smooth in the nation. After the infamous 2005 United States Grand Prix in 2007, Formula One was to be pulled out of the U.S. However, the sport returned to a new circuit in Texas in 2012 and even has a U.S.-based team this season.
The Pressing Problems
Formula One has been expanding rapidly to newer places, with racing events in Baku, Azerbaijan and Sochi, Russia. However, the sport has been losing fans and viewership due to the predictability and boredom associated with the sport. Additionally, critics have voiced grudges against the stringent regulations governing the sport. However, since the new Formula One owner is a media company, we do expect Formula One to make an exciting comeback.
America– Opportunity for Formula One?
While Formula One has had a rough journey in the U.S., the entry of an American team is expected to reignite interest of Americans in the sport. Moreover, we do expect addition of a number of races in other parts of the country. This can even lead to increased participation of American teams in the sport. Thus, it is no surprise that Liberty Media sees vast opportunities for the sport in the country. Notably, the company has been vying for a 49% stake in Formula One in 2014 in collaboration with Discovery Communications Inc. .
The Bottom Line
Formula One is expected to face tough competition from NASCAR and Verizon Communications Inc. (VZ - Free Report) sponsored INDYCAR series in the U.S. However, boasting the highest class of auto racing in the world, Formula One is popular and followed globally not only by motorsports fans, but also by wealthy individuals. This makes the sport a great value proposition for pay-TV operators. Thus, Liberty Media can benefit from the buyout in the form of increased revenues. Additionally, Liberty Interactive Corporation’s subsidiaries like QVC can benefit from the online sales of Formula One related merchandise.
LIBERTY MEDIA-A Price
LIBERTY MEDIA-A Price | LIBERTY MEDIA-A Quote
Liberty Media carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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