News Corp and Exor reveal F1 plan

Exor controls Ferrari through Fiat

Rupert Murdoch’s News Corporation and an Italian invesment firm linked to Ferrari are working on a possible bid to take control of Formula 1.

“Exor and News Corp will approach minority partners and key stakeholders in the sport,” a joint Exor and News Corp statement read.

“There can be no certainty that this will lead to an approach to F1’s current owners.”

F1 is owned by the private equity firm CVC Partners.

Last month the 80-year-old Bernie Ecclestone, who runs F1 on behalf of CVC, said reports that News Corporation was in talks to buy F1 were “rubbish”.

Any takeover would involve changes to the Concorde Agreement, a commercial arrangement involving the racing teams, CVC and the sport’s governing body, the FIA.

This agreement says that the sport should be shown on free-to-air television where possible.

However, the current agreement runs out at the end of 2012, and the signatories are in the process of negotiating a new one.

The BBC currently has the UK broadcasting rights to F1 until 2013.

News Corp, which owns 39% of broadcaster BSkyB and is trying to buy the rest of the company, could face regulatory hurdles if it took on broadcasting rights.

In 1998, News Corp tried to buy the Manchester United football team but was blocked by the Competition Commission because of Sky’s dominance in broadcasting the sport.