Toto Wolff has relinquished a significant stake in the Mercedes Formula One team, selling off 15% of his shares to American billionaire George Kurtz. This deal marks a substantial increase in the valuation of the Mercedes F1 team, which now stands at $6 billion (£4.6 billion). The sale represents a seven-fold growth since Ineos acquired its one-third stake for £208 million in 2020.
Wolff's holding company owns approximately one-third of Mercedes F1, making this shareholding equivalent to around five percent of the team. As part of the deal, Wolff will retain his position as Team Principal and Chief Executive Officer while maintaining a reduced level of control over the governance of the team.
Kurtz, who is not affiliated with Crowdstrike, the cybersecurity firm that serves as Mercedes' sponsor, has stated that he was attracted to F1 due to its growing popularity in the US market. The billionaire described Formula One as "a thriving business" and expressed confidence that it will continue to grow, justifying his investment decision.
Kurtz's stake acquisition is also a testament to the increasing value of teams within the sport. Mercedes' valuation has risen by approximately seven times its revenue, which was £636 million last year. This figure places the team below Manchester United but above Liverpool in terms of valuations for leading non-US sports franchises.
Mercedes F1 is poised to compete in three remaining races this season, starting with the Las Vegas Grand Prix. Their lead driver, George Russell, has secured two victories out of 21 grand prix events so far and ranks fourth in the drivers' championship standings behind McLaren's Lando Norris and Oscar Piastri, and Red Bull's Max Verstappen.
In an analysis of F1 team valuations, Forbes predicted that Mercedes would be one of only a few teams to maintain their position at the top. With Ferrari valued at $6.5 billion (£5 billion) by Forbes, the competition is fierce but ultimately drives growth in the sport and enhances team valuations.
Mercedes' revenue stream includes sponsorship deals, licensing income, prize money from F1 events, and revenue generated from gear sales to rival teams like Williams and Aston Martin. The value of these partnerships underscores Mercedes' role as an integral component within the broader car manufacturing industry, with its shares traded on the New York Stock Exchange.
Overall, Kurtz's stake acquisition highlights the burgeoning growth in F1 valuations and indicates that investors perceive the sport to have vast market potential.
Wolff's holding company owns approximately one-third of Mercedes F1, making this shareholding equivalent to around five percent of the team. As part of the deal, Wolff will retain his position as Team Principal and Chief Executive Officer while maintaining a reduced level of control over the governance of the team.
Kurtz, who is not affiliated with Crowdstrike, the cybersecurity firm that serves as Mercedes' sponsor, has stated that he was attracted to F1 due to its growing popularity in the US market. The billionaire described Formula One as "a thriving business" and expressed confidence that it will continue to grow, justifying his investment decision.
Kurtz's stake acquisition is also a testament to the increasing value of teams within the sport. Mercedes' valuation has risen by approximately seven times its revenue, which was £636 million last year. This figure places the team below Manchester United but above Liverpool in terms of valuations for leading non-US sports franchises.
Mercedes F1 is poised to compete in three remaining races this season, starting with the Las Vegas Grand Prix. Their lead driver, George Russell, has secured two victories out of 21 grand prix events so far and ranks fourth in the drivers' championship standings behind McLaren's Lando Norris and Oscar Piastri, and Red Bull's Max Verstappen.
In an analysis of F1 team valuations, Forbes predicted that Mercedes would be one of only a few teams to maintain their position at the top. With Ferrari valued at $6.5 billion (£5 billion) by Forbes, the competition is fierce but ultimately drives growth in the sport and enhances team valuations.
Mercedes' revenue stream includes sponsorship deals, licensing income, prize money from F1 events, and revenue generated from gear sales to rival teams like Williams and Aston Martin. The value of these partnerships underscores Mercedes' role as an integral component within the broader car manufacturing industry, with its shares traded on the New York Stock Exchange.
Overall, Kurtz's stake acquisition highlights the burgeoning growth in F1 valuations and indicates that investors perceive the sport to have vast market potential.
. So like Mercedes was already making a lot of money from F1 and car sales, but now they're getting even more investment with George Kurtz coming in 
. It's crazy to see how much the team is worth now – $6 billion! That's insane 
. I don't really know much about F1, but it seems like the sport is growing in popularity, especially in the US 
. Maybe this is a sign that it'll become more mainstream and attract even more sponsors? The fact that Kurtz is thinking about its potential for growth is reassuring 
. It's also cool to see how this deal affects George Russell's chances of winning – I don't think he's going to win the championship this year, but maybe next season 
. Anyway, it'll be interesting to see how Mercedes and other teams handle their increased valuations 
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... I mean, think about it, Toto Wolff is basically selling a piece of his team for a huge sum of money. What's to say George Kurtz isn't gonna sell it all to someone else soon? 
it always talks about the same old F1 stuff. Can't we discuss something new for once? Like, did you guys know that Toto Wolff's stake in Mercedes has gone from 0% to 100% in just a few years? It's wild to think about how much power he's given up, but at least his pockets are still fat 
. Has anyone else noticed how crowded the top teams have gotten? Ferrari's valued at $6.5 billion now, it's like they're all competing in some kind of rich person's Olympics 
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. but seriously, $6 billion valuation is insane! it's like they're printing money or something 
. the fact that teams are worth more than liverpool or man united is wild tho 
I think this deal is a solid move for both parties involved. It's dope how Toto Wolff is still at the helm but with less control, it's like he's passing the torch to George Kurtz 
. The fact that Mercedes' valuation has skyrocketed from £208 million in 2020 to $6 billion now is insane! 
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. It's interesting to see the rise in team valuations though - I mean, who wouldn't want a piece of that action? 
... it'll be interesting to see how that impacts their performance. What do you guys think? Will Mercedes continue to dominate or will Ferrari catch up?