News Corp. and Italian financial holding company Exor are "exploring the possibility of a bid" for Formula One, according to Liefgreen & Bertacche of BLOOMBERG NEWS. The pair in a joint statement said that they are "seeking other investors to back a bid, although a formal offer may not be made." F1 owner CVC Capital Partners said that it "had received a 'friendly' approach from the group, which acknowledges that the series is privately owned and 'not currently for sale.'" CVC said in a statement, "CVC recognizes the quality of Exor and News Corporation as potential investors, but any investment in Formula One will require CVC’s agreement and will need to demonstrate that it is in the interest of the sport and its stakeholders, taken as a whole" (BLOOMBERG NEWS, 5/3). News Corp. and Exor in a statement said, "Over the coming weeks and months, Exor and News Corporation will approach potential minority partners and key stakeholders in the sport. There can be no certainty that this will lead to an approach to Formula One's current owners" (London TELEGRAPH, 5/4). F1 Management Chair Bernie Ecclestone said that he "did not think CVC, owners of F1 since 2005, were sellers" (FINANCIAL TIMES, 5/4). He added, "If somebody came along and offered them a lot more money than it's worth, they would obviously say: 'Sit down, let's have a chat.' But I get the distinct feeling that's not going to happen. I can't understand why a company as big as News Corp. need to keep looking for partners" (GUARDIAN, 5/4).
ROAD BLOCKS: The WALL STREET JOURNAL's Castonguay & Adams note aligning with F1 "would bolster News Corp.'s pay-television properties" (WALL STREET JOURNAL, 5/4). However, the AP's Rob Harris noted a "potential stumbling block to any takeover is the current Concorde Agreement between F1's commercial rights holder, its governing body FIA and the participating teams." A clause in the agreement, which expires at the end of '12, stipulates that races "should be shown on free-to-air television where possible rather than on subscription networks that have proved so profitable for Murdoch." Another "hurdle to overcome" would be Exor "being part of a bid for the sport given that it controls" the Ferrari F1 team (AP, 5/3).
