Liberty Global, Discovery In Discussions For Stake In Formula One: Bloomberg

(RTTNews) - John Malone's Liberty Global Plc. (LBTYA) and Discovery Communications Inc. (DISCA) are in talks with the owners of Formula One to bridge a $1 billion valuation gap, as the two firms seek to buy a 49 percent stake in the auto-racing series, Bloomberg reported, quoting people with knowledge of the matter.

Talks are in progress with CVC Capital Partners Ltd., which owns about 35.5 percent of Formula One, and bankrupt Lehman Brothers Holdings Inc., which has a 15.3 percent stake.

Liberty Global and Discovery would like to pay about $4 billion for the stake, valuing the business at $8 billion. Meanwhile, private-equity firm CVC and Lehman want about $500 million more.

The acquisition will help Liberty Global and Discovery strengthen their sports content along with their other European cable-TV assets. About 50 million people watch the 90-minute Formula One races on television.

Discovery acquired a 51 percent stake in sports media group Eurosport International earlier this year.

CVC is said to be considering an initial public offering of Formula One.

LBTYA closed down 2.6 percent on Thursday at $43.26. DISCA settled down 0.2 percent at $78.50.