Toto Wolff announced on Thursday that he has sold a portion of his Mercedes shares. The Austrian billionaire, in addition to being the team boss, is also a major shareholder of the Silberpfeile. This week, he confirmed that he has transferred 15 percent of his stake in the F1 team to George Kurtz, founder and CEO of sponsor CrowdStrike. The management structure within the team remains unchanged, but according to Wolff, the transaction underscores the value of Mercedes.
Wolff transferred 15 percent of his shares to American billionaire George Kurtz, founder and CEO of cybersecurity company CrowdStrike, also a key sponsor of Mercedes. The team’s value was estimated at a record amount of over 5 billion euros, significantly more than previous valuations of, for example, rival McLaren. Wolff emphasized the growth of the racing stable and the opportunities within Formula 1; according to him, Mercedes now belongs to the five, perhaps even three, most profitable sports teams in the world.
In the run-up to the race weekend in Las Vegas, Wolff was asked by Sky Sports about the deal. “I think it’s a good development,” he responded. “It shows that the teams have become sustainable and profitable.” He explained the billion-euro valuation: “That amount doesn’t just fall from the sky. If you look at our revenues and cash flows, we are among the five – perhaps even three – most profitable sports teams in the world. These valuations are the result of many years of work. The sport is in an excellent state.”
George Kurtz
The agreement with Kurtz does not alter the existing power dynamics within the team. Mercedes-Benz, sponsor INEOS, and Toto Wolff each continue to own a third of the team. Only the internal structure within Wolff’s own share changes. In addition, Kurtz has been appointed as a technology advisor. “Formula 1 is at a turning point and is a thriving business,” said the American. “When you make such an investment, you believe that the sport will grow and that valuations will rise. And that you can contribute to that growth yourself.”
“George (Kurtz) has an exceptionally broad background,” added Wolff. “He is a driver, a loyal sports ambassador for Mercedes, and a successful entrepreneur. He understands both the demands of racing and the reality of building and scaling technology companies. That combination provides insights that are becoming increasingly relevant for the future of Formula 1.”
