Warner Bros. Discovery, Inc. (NASDAQ:WBD) shares are trading lower. Liberty Global on Thursday announced intentions to acquire Warner Bros. Discovery’s stake in Formula E.
What Happened: Liberty Global announced that it’s set to acquire shares held by Warner Bros. Discovery in the electric car racing series Formula E. The acquisition is expected to bring Liberty Global’s total ownership of Formula E up to 65%, giving Liberty controlling interest in the electric motorsport.
Liberty has been investing in Formula E for the past nine years. The deal is subject to regulatory approval, but is expected to close before the end of the year.
Mike Fries, CEO of Liberty Global, said, “We’re excited to take a controlling interest in Formula E, a business we first invested in nearly ten years ago. Formula E has a massive potential for further growth while integrating the most advanced sustainability standards in sports. The investment continues our approach of disciplined capital rotation across our Ventures portfolio and our strategy of making long-term investments in highly attractive businesses.”
Warner Bros. Discovery was formed in 2022 through the combination of WarnerMedia and Discovery Communications. It operates in three global business segments: studios, networks and direct-to-consumer.
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WBD Price Action: At the time of writing, Warner Bros Discovery shares were down 6.02% at $7.33, according to data from Benzinga Pro.
Image:Â Siggy Nowak from Pixabay.
