Discovery Communications and John Malone's int'l cable operator Liberty Global on Monday "unveiled a deal to take a stake" in the company behind Formula E, according to Georg Szalai of the HOLLYWOOD REPORTER. Financial details were not disclosed, and spokespersons "declined to share specifics." But sources familiar with the situation said the combined investment was approximately $55M for a "one-third stake in the company behind the circuit." Malone is also a big shareholder in Discovery, which "has been acquiring smaller sports rights, especially in Europe where it acquired pan-European sports network Eurosport in the past." Formula E CEO Alejandro Agag said, "The experience and knowhow they bring will provide a significant boost to Formula E" (HOLLYWOOD REPORTER, 3/9). In London, Kadhim Shubber reported Malone became the biggest backer of Formula E "after last year's talks on investing" in Bernie Ecclestone's Formula 1 "came to a standstill." Malone's investment in the fledgling racing tournament "will help boost its credibility among car manufacturers and fund the development of new products that further blur the line" between physical and digital sports, including a real-time video game where viewers race alongside drivers. Despite attracting high-profile backers such as actor Leonardo DiCaprio and entrepreneur Richard Branson, "the sport is yet to break into the mainstream." A person familiar with the deal said, "This investment takes Formula E to the next level, from being a start-up project to being a solid league which has a much more guaranteed future." The tie-up could persuade car manufacturers who have "previously shied away from the sport that it is here to stay." Swedish car manufacturer Volvo has hinted it "may participate, but to date Audi, Renault and India's Mahindra are the only big car manufacturers who have backed teams" (FINANCIAL TIMES, 3/9).
