Toto Wolff selling a small part of his stake in Mercedes
Image by Patrick Konior via Unsplash
By Nathan Devlin
Mercedes Benz-F1 team principal and CEO Toto Wolff is said to be in ‘advanced talks’ to sell a portion of his 33% stake in the team.
The stake reported to be around 5%, is being sold to George Kurtz the CEO of the American tech firm Crowd Strike, in deal worth an estimated $300 million. This news shocked many as only a few years ago INEOS purchased a stake in the team in 2022 for $208 million.
Mercedes-Benz, Toto Wolff and the British chemical company INEOS currently own 33% each respectively. This is a record valuation in the team, surpassing that given to the double constructor world champions McLaren which was an estimated $3.6 billion.
Toto Wolff greets supporters via Getty Images
Wolff is set to stay as the team principal and CEO of the team. The pre-existing ownership structure with the three partners being mostly unchanged with them being committed to the team’s success.
The timing of this sale is likely strategic as Wolff will look to unlock liquidity and find a significant profit from his investment which was valued at around $165 million when he joined in 2013. Selling now suggests a savvy portfolio management.
The likely buyer is George Kurtz. A long-term sponsor of the team suggests an attempt to deepen the relationship between the two and brings another dedicated motorsport partner into the teams’ workings.
Kimi Antonelli at the Sao Paulo sprint viat Getty Images
Mercedes said: "We will be making no comment on this. The governance of the team will remain unchanged, and all three partners are fully committed to the ongoing success of Mercedes-Benz in Formula One."
The Primary reason for the sale now is the expansion of Wolff’s portfolio. With Formula 1 becoming more popular it seems like a good time to sell, especially with the Netflix docuseries ‘Drive to Survive’ boosting the popularity of the sport in the US. Wolff will look to cash in on the growing audience from across the globe.