Liberty Formula 1: Where Luxury Meets Streaming (Issue #12)
pillarsandprofits.substack.com
Liberty Media Formula One FWON.K: $61.86 Market Cap: $14.37 billion Enterprise Value: $16.06 billion Company Overview Liberty Media spun-off from TCI in 1991. The spin-off was orchestrated by John Malone (now Chairman of Liberty), at a valuation of $600 million. Liberty assets are now worth $44.3 billion (Liberty Media, Cable/Broadband, SiriusXM, Formula One, Drone Racing, and many more) and Malone now has set his sights on the streaming industry. Malone is heavily involved in streaming (the mastermind behind Discovery Network’s global push and then the Warner Brothers Discovery merger). Malone has a few key attributes he looks for in a successful media company. His playbook was built through his “Cable Cowboy” years pioneering the cable business and it applies equally in streaming: strong customer “stickiness” meaning low churn rate, direct customer relationships (already having customers' payment information from previous transactions), global growth potential, and existing scale. Formula One checks all these boxes.
Liberty Formula 1: Where Luxury Meets Streaming (Issue #12)
Liberty Formula 1: Where Luxury Meets…
Liberty Formula 1: Where Luxury Meets Streaming (Issue #12)
Liberty Media Formula One FWON.K: $61.86 Market Cap: $14.37 billion Enterprise Value: $16.06 billion Company Overview Liberty Media spun-off from TCI in 1991. The spin-off was orchestrated by John Malone (now Chairman of Liberty), at a valuation of $600 million. Liberty assets are now worth $44.3 billion (Liberty Media, Cable/Broadband, SiriusXM, Formula One, Drone Racing, and many more) and Malone now has set his sights on the streaming industry. Malone is heavily involved in streaming (the mastermind behind Discovery Network’s global push and then the Warner Brothers Discovery merger). Malone has a few key attributes he looks for in a successful media company. His playbook was built through his “Cable Cowboy” years pioneering the cable business and it applies equally in streaming: strong customer “stickiness” meaning low churn rate, direct customer relationships (already having customers' payment information from previous transactions), global growth potential, and existing scale. Formula One checks all these boxes.