The parent company behind UFC and WWE has found itself at the center of speculation about a potential blockbuster acquisition of Formula 1, though executives have moved quickly to dismiss the possibility.
According to sources, TKO Group Holdings emerged as a potential suitor for the global motorsport championship following a significant shift in corporate control at Liberty Media, which currently owns F1.
The change came after media mogul John Malone exchanged shares carrying substantial voting power for shares without those rights, reducing his influence from 48% to less than 3%.
Wall Street analyst Peter Supino of Wolfe Research identified TKO as the buyer that “makes the most sense” for Formula 1 in a research note published Friday.
He also pointed to other potential interested parties, noting “and it’s easy to imagine interest from Saudi Arabia, UAE interests, or a consortium of billionaires.” Supino labeled Netflix as his “top dark horse” candidate, citing the streaming platform’s potential to capitalize on owning content that drives global viewership.
The Malone transaction eliminated the possibility of a third party acquiring his voting shares through a transfer, Liberty Media said. Malone, who had served as chairman emeritus, will transition to a senior advisor role.
Supino suggested a potential offer could value Liberty at 30 to 35 times its free cash flow, translating to approximately $120 to $140 per share based on Friday’s closing price of $106.33. If sovereign wealth funds entered the bidding with less conventional return requirements, the price could climb as high as $200 per share, he estimated. Wolfe Research subsequently raised its Liberty price target from $124 to $128.
TKO has previously shown interest in motorsports. The company was reportedly among the bidders for MotoGP before Liberty Media acquired that championship last year, marking its first known exploration of a racing property.
However, TKO President and COO Mark Shapiro directly addressed the speculation during an appearance at the Goldman Sachs Communacopia & Tech Conference in San Francisco on September 10, 2026. He praised Formula 1’s current management while firmly stating the championship was not available.
“I love Formula One, and I think they’re amazing, huge upside, but it’s very well run under Liberty,” Shapiro told Yahoo Finance. “They’ve done a great job with it, and it’s not for sale. And you know what, this isn’t a year for us for M&A. We are in a year of execution. That is the headline for us. We’re about improving our margins. We’re about getting to normalized free cash flow of 60%. We’re about controlling our leverage.”
While Wolfe Research identified TKO as a sensible buyer if Liberty Media chose to sell, Shapiro made clear that no such opportunity exists and that acquisitions are not part of TKO’s 2026 priorities.
TKO currently operates a portfolio of live sports and entertainment properties including UFC, WWE, Zuffa Boxing and Professional Bull Riders. The company reported strong second-quarter results with revenue of $1.55 billion, an 18% year-over-year increase. Adjusted EBITDA rose 23% to $650 million.
Major events including UFC Freedom 250 at the White House, WrestleMania 42 and WWE Backlash contributed to the performance. The company also benefited from a $7.7 billion, seven-year agreement with Paramount for exclusive UFC event rights. Executives raised full-year 2026 revenue guidance to $5.77 billion to $5.82 billion and upgraded the adjusted EBITDA outlook.
With a market capitalization of approximately $37 billion compared to Formula One Group’s roughly $20 billion valuation, TKO could theoretically use its shares as acquisition currency if a deal were to materialize. Yet Shapiro’s comments suggest the company remains focused on operational execution and financial discipline rather than transformative deals.
Liberty Media acquired Formula 1 from CVC Capital Partners in 2016 at an enterprise value of approximately $8 billion. Bloomberg reported in 2023 that Saudi Arabia had considered acquiring the championship for $20 billion, though no transaction occurred.
Despite the analyst speculation and apparent strategic logic, the current stance from both sides suggests Formula 1 will remain under Liberty Media’s ownership for the foreseeable future.
