Mercedes-AMG PETRONAS Formula One Team principal Toto Wolff is reportedly in advanced negotiations to sell a significant portion of his stake in the championship-winning outfit, a move that could value the team at a staggering £4.6 billion.
Record-Breaking Valuation for F1 Giant
According to initial reports from Sportico and subsequent confirmation by The Times, Wolff is engaged in detailed talks with George Kurtz, the chief executive of cybersecurity firm CrowdStrike. The proposed deal would see Kurtz acquire approximately 5 per cent of the team.
This transaction places an unprecedented £4.6 billion ($6 billion) valuation on the Mercedes F1 team, underscoring its immense financial worth despite recent competitive challenges on the track. Wolff originally purchased a 30 per cent stake in the team when he took over leadership in January 2013 and increased his holding by a further 3 per cent in December 2020.
Power Structure to Remain Unchanged
Crucially, the potential sale is not expected to trigger any changes in the team's leadership or operational control. The Times highlights that Kurtz would enter the holding company that owns Wolff's shares, ensuring that voting power remains unaffected.
Wolff is therefore anticipated to continue in his dual role as both team principal and chief executive officer, indicating the deal is primarily a financial manoeuvre rather than a step back from his responsibilities.
A statement from Mercedes reinforced this position, stating: "We will be making no comment on this. The governance of the team will remain unchanged, and all three partners [Mercedes-Benz, Toto and Ineos] are fully committed to the ongoing success of Mercedes-Benz in Formula 1." The remaining 66 per cent of the team is divided equally between Ineos and Mercedes-Benz.
F1's Soaring Commercial Appeal
This colossal valuation arrives during a period of remarkable commercial growth for Formula One globally. Under the ownership of Liberty Media, the sport has successfully transformed its fanbase, becoming notably more popular among women and a younger demographic.
This expansion has been fuelled by the wildly successful 'Drive to Survive' series on Netflix and the recent F1 film, which grossed over £458 million at the global box office.
Stefano Domenicali, President and CEO of Formula One, recently told The New York Times: "F1 racing is technology, but it has evolved into a world of entertainment, capturing new fans, new partners, new content, with the reward being massive in terms of revenues and growth." This sentiment was echoed by McLaren team principal Andrea Stella, who praised the sport's current business success as something that "should not be taken for granted."
On the track, Mercedes currently holds second place in the constructors' championship, with their partner team, McLaren, having already clinched the title.
