George Kurtz Revealed as New Mercedes Shareholder as Wolff Nears Stake Sale

Toto Wolff is reportedly in advanced discussions to sell a portion of his Mercedes F1 team stake, a move that could value the team at an unprecedented $6 billion. The buyer's identity has now been revealed as George Kurtz, co-founder and CEO of CrowdStrike, a key commercial partner of the Brackley-based team.

Why it matters:

After years of consistent success, the potential $6 billion valuation for the Mercedes F1 team underscores the sport's burgeoning financial appeal and the increasing value of its top franchises. This deal highlights the significant returns for long-term investors in F1, a sport experiencing unprecedented global growth, especially in the US market. For Mercedes, it injects fresh capital and reinforces its financial stability, while for Wolff, it represents a strategic personal investment adjustment.

The Details:

• Investor Identity: George Kurtz, co-founder and CEO of CrowdStrike, is the prospective buyer. CrowdStrike has been a prominent sponsor of Mercedes since 2019, featuring on car liveries and driver suits, and also provides cybersecurity services for the team.
• Kurtz's Racing Background: Beyond his corporate role, Kurtz is a seasoned racing enthusiast with an impressive resume, including wins in GT World Challenge and IMSA, and participation in the 24 Hours of Le Mans and the Indianapolis 8 Hour.
• Valuation Milestone: If the deal goes through, Mercedes would become the most highly valued team in Formula 1, surpassing McLaren's recent valuation of over £3 billion (approximately $3.7 billion USD) following its acquisition by Bahrain's Mumtalakat and Abu Dhabi's CYVN Holdings.
• Wolff's Stake and Role: Wolff is expected to sell 5% of his stake, reducing his ownership to 28%. Crucially, he will retain his existing roles as Mercedes CEO and team principal, ensuring continuity in leadership and team operations.

The big picture:

This development reflects a broader trend of escalating valuations within Formula 1, driven by increased global viewership, particularly from Netflix's 'Drive to Survive' series and expanding markets like the United States. High-profile investments from individuals like Kurtz, who brings both financial backing and a deep passion for motorsport, signal a robust future for the sport's commercial landscape. It also demonstrates confidence in Mercedes' long-term performance and brand value, despite recent on-track challenges.

What's next:

Mercedes has confirmed that the governance of the team will remain unchanged, with all three key partners—Mercedes-Benz, Toto Wolff, and Ineos—fully committed to the team's ongoing success. The finalization of this deal would solidify Mercedes' position as a financial powerhouse in F1 and potentially set a new benchmark for future team valuations. It also further integrates a key commercial partner, CrowdStrike, into the team's ownership structure, potentially leading to deeper collaborations.