Malone Taking F-1 Stake Said to Hang on $1 Billion Value Gap

John Malone’s Liberty Global Plc and Discovery Communications Inc. are working to bridge a $1 billion valuation gap with the owners of Formula One, as they seek to buy a 49 percent stake in the auto-racing series, people with knowledge of the matter said.

Talks with CVC Capital Partners Ltd. and Lehman Brothers Holdings Inc. are continuing, said the people, who asked not to be identified because the process is private, and a deal may not be reached. CVC owns about 35.5 percent of Formula One and bankrupt Lehman owns 15.3 percent. Liberty Global and Discovery want to pay about $4 billion for the stake, valuing the business at $8 billion. CVC, the London-based private-equity firm, and Lehman want about $500 million more for the stake, the people said.