學門類別
最新個案
- Leadership Imperatives in an AI World
- Vodafone Idea Merger - Unpacking IS Integration Strategies
- V21 Landmarks Pvt. Ltd: Scaling Newer Heights in Real Estate Entrepreneurship
- Snapchat’s Dilemma: Growth or Financial Sustainability
- Did I Just Cross the Line and Harass a Colleague?
- Predicting the Future Impacts of AI: McLuhan’s Tetrad Framework
- Porsche Drive (A) and (B): Student Spreadsheet
- Porsche Drive (B): Vehicle Subscription Strategy
- TNT Assignment: Financial Ratio Code Cracker
- Winsol: An Opportunity For Solar Expansion
Intangible Asset Valuation at Liberty Media and Formula One
內容大綱
A business school student was preparing for a stock pitch competition. He had developed an interest in stock held by investor Warren Buffet in Liberty Media Corp.’s Series C Liberty Formula One common shares. His research revealed that a substantial part of Formula One’s valuation was accounted for as intangible assets and comprised, in particular, what was known as the 100-year agreement with the Fédération Internationale de l’Automobile, the sport’s governing body. The student was interested in how such an agreement on paper could be worth billions of dollars and how that translated into value for investors. What factors would—and should—Liberty Media Corp. have considered when attributing a value to an asset such as the 100-year agreement that was ten times higher than its original cost? How should investors view these inflated values for intangible assets such as the 100-year agreement and Formula One’s customer relationships and what would be their impact on Liberty Media Corp.’s earnings and future stock value?
學習目標
This case is suitable for courses in financial accounting and business valuation at the undergraduate and graduate levels. After working through the case and assignment questions, students will be able to<ul><li>understand the Formula One Group’s business model and its operating environment;</li><li>understand how to recognize and value intangible assets;</li><li>recognize the differences between accounting for intangible assets under international financial reporting standards and US Generally Accepted Accounting Principles; and</li><li>understand the impact of corporate acquisition on the value of intangible assets.</li></ul>