Toto Wolff Sells Part of Mercedes F1 Stake to Billionaire George Kurtz Enhancing Team Dynamics
Toto Wolff has finalized a significant transaction involving his stake in the Mercedes Formula 1 team. He sold 15% of his shareholding to American billionaire George Kurtz. The deal is valued at approximately $6 billion (£4.6 billion), marking a record valuation for an F1 team.
Details of the Deal
The transaction sees Kurtz, 55, acquiring 5% of Mercedes F1, coming from Wolff’s holding company, which retains a one-third stake in the team. Wolff stands to gain $300 million (£230 million) from this sale.
About George Kurtz
- Kurtz is the founder of Crowdstrike, a cybersecurity firm.
- He has been a sponsor of the Mercedes team.
- Kurtz’s investment comes from personal funds, not from his company.
Strategic Role at Mercedes
Despite his substantial investment, Kurtz will not be on the main board. However, he will participate in the strategic steering committee of Mercedes F1. This committee includes key figures like Ola Kallenius, chairman of the Mercedes Group, and Ineos chairman Sir Jim Ratcliffe.
Insights from the Deal
Kurtz expressed optimism regarding the sport’s future, commenting on the growth in team valuations and global appeal of Formula 1. He noted, “Formula 1 is really at an inflection point where it is a thriving business.”
Wolff’s Commitment to the Team
Toto Wolff will maintain his role as team principal and CEO. He highlighted Kurtz’s diverse background, stating that it combines the demands of racing with the complexities of technology business development. This expertise is deemed valuable as the sport evolves.
Historical Context of Team Valuations
This deal signifies a marked increase in the value of Mercedes F1, which has surged more than seven times since Ineos acquired its share for £208 million in 2020. The rising valuations reflect the robust growth and global interest in Formula 1, underscored by the recent box office success of an F1-themed movie starring Brad Pitt.
Current Status of Mercedes F1
Currently, Mercedes holds second place in the constructors’ championship, heading into the Las Vegas Grand Prix. Lead driver George Russell has claimed two victories in 21 races this season. He currently ranks fourth in the drivers’ championship, trailing behind McLaren’s Lando Norris, Oscar Piastri, and Red Bull’s Max Verstappen.
