Discovery Buys Stake in Auto Racing Circuit

Discovery Communications and Liberty Global are buying a stake in Formula E Holdings, a race circuit for electric cars.

Discovery has gotten into the sports business through its acquisition of Eurosport and is looking to control the costs of acquiring rights to events. Discovery has also been expanding its auto-based network brands Velocity and Turbo.

"We are very pleased to join Formula E's ownership group. With unmatched global distribution, our Velocity, Turbo and Eurosport brands, and 30 years of experience as a global media company, Discovery's unique expertise will help develop this new and unique motor sport," Bruce Campbell, Discovery Communications chief development & digital officer and general Counsel, said in a statement.

The first Formula E race took place in September in Beijing. Nine more races are scheduled in locations including London, Miami, Buenos Aires and Moscow.

"It is a significant step forward for Formula E to receive the backing of two major global media companies when we are barely halfway through our first season," said Formula E CEO Alejandro Agag. "The experience and knowhow they bring will provide a significant boost to Formula E. We look forward to creating new opportunities together to develop and promote premium content for a global audience."

Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.