A German media company which recently snapped up the rights to the Muppets is to take a 50 per cent stake in Formula One, it was announced yesterday. Munich-based EM.TV & Merchandising will pay Stg £1.1 billion in cash and shares for the stake in SLEC, the parent company of Formula One. The group also has an option to buy another 25 per cent of the company over the next 12 months.

The stake is being bought from British and United States venture capital companies Morgan Grenfell Private Equity and Hellman and Friedman.

The remaining 50 per cent of SLEC is still owned by F1 mogul Bernie Ecclestone through a family trust.

The deal continues the rapid expansion of EM.TV, which last month bought up The Jim Henson Company for £435 million, giving it ownership of all the Muppet characters and programme archives.

Ecclestone said he was happy to welcome EM.TV into Formula One as a shareholder.