Racing is one industry that could garner attention from individuals of every group; either they are young or old. And if it’s Formula one, then the interest soars several folds. Liberty Media Formula One (NASDAQ: FWONA) is a group of companies that is responsible for the promotion of the formula one world championship as well as exercising the commercial rights of the highly popular race. The company has an outstanding market capitalization of $14.59 billion, while the average trading volume remains at 146,240 shares, depicting the fact that FWONA shares have got a mercurial nature.
Huge Development for the American Fan base
For the last several years, the US-based fan base of Formula 1 was asking for the hosting rights of F1 races, even though United States Grand Prix and Miami Grand Prix have already been taking place in the US. Hence, keeping in view the growing interest from fans, FWONA announced a couple of weeks ago that from 2023, it would be racing in Las Vegas as well. The race would take place at night in November 2023. The company said that it would closely work with Live Nation Entertainment and the LVCVA to the promotion of the race in local communities.
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Role of Liberty Media in Growth of FWONA
Recently, Formula 1 group has been bought by the Liberty Media Group. The racing giant has gone through some transitions under the ownership of Liberty Group. The commercialization subject of the race has been greatly taken care of. The financial and technical aspects of the Formula 1 have also endured several changes since the ownership takeover by Liberty Group. The decision by F1 to set the spending caps, which is aimed at equalizing the machines while focusing on driver’s abilities, is among the most notable steps since the ownership change, which is aimed at fomenting the interest of the fan base.
Risks for FWONA
The major risk for FWONA would be the slowdown in the growth of the fan base. With the competition not providing an equal playing field to all the sides during recent years, the competitive aspect of the game has been overtaken by the financial one, fomenting fans’ disinterest. However, the rule change mentioned above could foster providing more equal opportunities to all of the teams.
Looking ahead, the future seems ripe for the growth of entertainment-related stocks. The ownership from an able company like Liberty Group has provided Formula 1 with a chance to garner investor interest.