FWONALiberty Media Corp.

Quick Summary

Liberty Media Corp. (FWONA), through its Formula One Group, operates as a diversified media and entertainment company based in Englewood, Colorado. The company’s primary asset is the ownership and commercial rights to the Formula 1 World Championship, one of the world’s most watched and globally recognized sporting events. Through this division, Liberty Media organizes and promotes F1 races, manages media broadcasting rights, secures corporate sponsorships, and develops various fan engagement platforms. The company caters to a global audience of motorsport fans, media partners, sponsors, and advertisers. Apart from F1, it has expanded operations to include MotoGP, further strengthening its portfolio in premier motorsports and live entertainment events.

Key Risks

• The company faces several risks, including intense competition from other live sports and entertainment providers, as well as potential disruptions from macroeconomic factors like recession, political instability, or global health crises that could limit travel or crowd gatherings.
• Regulatory challenges or adverse changes in media rights laws in various jurisdictions may affect revenues.
• The increasing costs of running international sporting events can impact margins, especially if key events underperform financially as seen with the Las Vegas GP.
• There is also risk from changing media consumption patterns, such as cord-cutting or shifting preferences toward competing entertainment content.

What to Watch

Price Drivers

• The stock price of Liberty Media’s Formula One Group is primarily driven by the growth in global media rights deals, expansions into new markets, increased sponsorship revenue, and sustained or growing attendance at live events.
• Macroeconomic trends such as the increasing popularity of motorsports, particularly in the U.S.
• and Asia, and growth in digital streaming adoption also play significant roles.
• Strategic acquisitions like MotoGP, renewal and expansion of race contracts, and successful negotiation of broadcasting rights with major media partners (such as Apple and potentially Netflix or Amazon) are other major factors.

Recent News

• Recent news highlights the ongoing growth and momentum for Liberty Media.
• The company’s Formula One Group has seen its share price jump 159% over five years, with total shareholder return at 168%, fueled mainly by robust annual revenue growth and continued global expansion.
• Notable events in the past quarter include strong financial results, the strategic acquisition of MotoGP, and the announcement of Apple as the new U.S.
• broadcast partner for Formula 1.

Market Trends

• The broader sports and entertainment market is experiencing strong growth, with the global motorsports market projected to grow from $6.7 billion in 2024 to $10.1 billion by 2030.
• This growth is driven by expanding audience interest in emerging markets, technological innovation, and rising investment in digital platforms that enhance fan engagement.
• Regional growth is strong in the U.S., China, and the Asia-Pacific, while trends such as sustainability, electrification, and advanced media partnerships (including potential deals with streaming giants) are shaping future opportunities.
• The increasing crossover of sports with technology and new forms of entertainment is raising valuations and attracting diversified investment from global funds.