John Malone’s Liberty Global, a major media group with a multi-billion dollar turnover, and Discovery Communication, are together set to become Formula E’s biggest shareholder.

According to a report in the Financial Times newspaper today, the size of the investment isn’t known. However, it must be in the several tens of millions of Euros in order to dwarf the investment of others such as Enrique Banuelos, Qualcomm and Causeway Media Partners.

The deal will help secure the future of the fledgling series and convince big name manufacturers that the sport has a stable base from which to grow.

John Malone, the US cable billionaire, is set to become the biggest backer of electric motor car championship Formula E after last year’s talks on investing in Bernie Ecclestone’s Formula One came to a standstill.

Mr 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.

“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,” said a person familiar with the deal, who declined to put a figure on the size of the investment.

The tie-up could persuade car manufacturers who have previously shied away from the sport that it is here to stay.

Mr Malone’s Liberty Global cable group, along with Discovery Communications which he also controls, will become the largest combined shareholders in Formula E Holdings, leapfrogging Enrique Banuelos, the Spanish real estate developer, and chief executive Alejandro Agag, who will be the second and third-largest shareholders.

Formula E, which has previously raised money from US tech company Qualcomm and private equity fund Amura Capital, is in principle no different to other motorsports competitions. However, the use of electric engines has set it apart.

The deal follows a string of high-profile investments by Mr Malone in the past 12 months, including the £550m purchase by Liberty and Discovery of All3Media, the maker of the TV series Midsomer Murders, and Liberty’s £481m investment in British broadcaster ITV.

Liberty has also been in talks to buy into Formula One but discussions with the sport’s largest shareholder CVC Capital Partners stalled last year.

ft.com