Toto Wolff Reportedly Selling Part of Mercedes F1 Stake at Record US$6 Billion Valuation

Toto Wolff is in advanced talks to sell a portion of his 33% stake in the Mercedes Formula One team, with the transaction valuing the team at an unprecedented US$6 billion. This deal highlights the soaring valuations of F1 teams under Liberty Media's ownership.

Why it matters:

This potential sale underscores the dramatic increase in Formula 1's financial appeal and the immense value now placed on its teams. For Mercedes, it signifies continued strong investment and stability, even as its long-standing team principal diversifies his portfolio, maintaining his leadership role.

The details:

• Record-breaking Valuation: The deal would value the Mercedes F1 team at US$6 billion, setting a new benchmark for F1 team valuations. This far surpasses McLaren Racing's reported US$4.06 billion valuation in September and the US$273 million Ineos paid for its 33% stake in Mercedes in 2020.
• Buyer Identified: George Kurtz, CEO of cybersecurity firm CrowdStrike, is reportedly in advanced talks to acquire five percent of Wolff's shareholding. CrowdStrike has been a global partner of the Mercedes team since 2019.
• Wolff's Role Unchanged: Toto Wolff will retain his position as CEO and team principal of the Mercedes F1 team, ensuring leadership continuity.
• Ownership Structure: The team's ownership will continue to be split among Mercedes-Benz, Ineos, and Toto Wolff, with no changes to the governance structure.
• Financial Performance: Mercedes F1 team reported record profits of US$164 million in 2024, with revenue growing 16% year-over-year to US$866.2 million.

The big picture:

The surge in F1 team valuations reflects the sport's growing global popularity, driven by initiatives like 'Drive to Survive' and increasing commercial revenues under Liberty Media. This trend makes F1 teams highly attractive assets for investors, demonstrating the sport's robust financial health and promising future.

What's next:

The finalization of this deal would cement Mercedes' position as one of the most valuable franchises in global sports. It also sets a new financial precedent for future transactions within Formula 1, potentially encouraging more high-profile investments across the grid. Wolff's continued leadership, combined with enhanced financial backing, bodes well for Mercedes' competitive future in F1.