Formula One racing, as led by Formula One Group (NASDAQ:FWONA), is a big draw in and of itself. Perhaps not as big as some, like NASCAR or the NFL, but big enough that there’s a company looking to pick up televising rights to Formula One racing. The possibility of that deal alone sent Formula One Group into the stratosphere, picking up nearly 10% in Monday afternoon’s trading.
So who’s planning to make a deal so big that it sends a stock up nearly 10%? No less than Apple (NASDAQ:AAPL), who’s considering picking up the rights for Apple TV streaming. Apple is planning an offer of $2 billion per year for access to those streaming rights, about double what it’s currently seeing. It could offer 25% exclusivity, reports note, but when the current contracts run out, Formula One could upgrade that to 100% exclusivity. Currently, Formula One Group’s contracts are with ESPN, a Disney (NYSE:DIS) operation, and will stay so through 2025. Given how things are going at Disney, though, it’s no surprise Formula One might be reconsidering.
Meanwhile, Formula One is actively working to make itself more attractive to viewers, with Andretti Global one step closer to joining the league as its 11th team. The FIA revealed that Michael Andretti and Andretti Global met the requirements to join the series. While Andretti tried for a two-car team, that part may not fly, as Andretti now must prove “commercial value” to the various stakeholders involved. Given that the teams are actively opposed to the expansion, that may prove tougher than expected.
Is Formula One Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on FWONA stock based on one Buy and one Hold assigned in the past three months, as indicated by the graphic above. Furthermore, the average price target of $73.50 per share implies 18.87% upside potential.
