Liberty Media acquired F1 ahead of the 2017 season in a deal worth around $4.4bn.
Since their takeover, F1 has enjoyed unprecedented growth through things like Drive to Survive and the sport’s increased presence on social media, opening it up to new markets and the younger generation.
Initially reported earlier this year, the Saudi Arabian Public Investment Fund (PIF) made a bid worth $20bn – which was rejected.
Saudi Arabia have been heavily investing in a number of sports recently, particularly football, with their takeover of Newcastle United, while they signed legendary football star Cristiano Ronaldo to one of their major football clubs.
Maffei addressed the takeover speculation to the Walker Webcast.
“The Saudis have been partners on a couple of things – they have a race, Aramco [state-owned petroleum company] is a sponsor – but they never approached us,” Maffei said.
“And frankly, $20 billion would not be an attractive price. It’s trading for $17 billion, $18 billion – why 20? I’d want a hell of a lot more than that. We’re pretty bullish on the future.”
He also explained why the company’s current structure deters it from selling currently.
“We’re a C-corp, meaning if we sell a division, we pay corporate-level tax and then any proceeds we would pay that get distributed to our shareholders, they would, in addition, pay tax,” Maffei explained.
“If we were to spin Formula 1 away, create a separate company, wait a sufficient time, have no plan or intent to sell, that asset could be sold down the road and there would be no corporate-level tax. So what I really was saying is the way we’re structured today, given that low-tax basis, we would not be sellers.
“If we wish to be sellers or even consider it right, you’d need to do a spin. And spinning it away, there are other reasons why we might do that – it’s not just to do a sale. But the way we are structured, that would be very unattractive.”
