F1 gets a new Chairman: to stay away from IPO floatation as of now
World’s most glamorous sport, Formula 1 which was expected to float its IPO at the Singapore Exchange estimated at $10 billion, has decided to stay away from getting listed, as of now. According to F1 supremo, Mr Bernie Eccelstone, this is not the right time. According to Mr Eccelstone, “The market doesn’t look too bright after that little bit of a problem with Facebook. So, I think they are going to wait and see.”
World’s largest social networking site, Facebook got listed last week at the NYSE. But ever since it’s listing, the value of Facebook shares has continuously declined. Facebook shares got listed at a price of $38 last Friday, after which it even touched an intraday high of $45. Over the last 6 working days, Facebook share price has declined by as much as 31%, touching a low of $30.95. Yesterday the stock closed at 31.91.
Seeing this dismal condition of Facebook share price, it is probably the correct decision for F1 to stay away from getting listed. As of now 70% of Formula One Group is owned by CVC Capital Partners while Mr Eccelstone himself owns 5.3% of F1’s business, and the remainder is owned by his family trust and financial advisers. If and when F1 does go ahead with the listing, it will be profitable for all the stake holders.
Bernie Eccelstone is the central figure around which the sport has been converted into a money minting venture. Since the last 40 years, Mr Eccelstone has handled F1 business and it will be difficult to describe F1’s survival after Mr Eccelstone retires. Meanwhile at the ongoing Monaco Grand Prix, Formula 1 board has appointed a new chairman, Mr Peter Brabeck, who is also the chairman of Swiss food group Nestle.
Speaking about Mr Eccelstone, Mr Brabeck said, “”He has a fantastic motivation. He has very good health.” Speaking about F1 after Mr Ecelstone, “As Bernie has said, you can’t replace Frank Sinatra but you can find another singer. One day we are going to find another singer and he or she will be different. The show will go on,” added the Austrian.