Mercedes (MBGAF) Formula 1 team CEO Toto Wolff is reportedly in advanced talks to sell part of his stake in the team to CrowdStrike (CRWD) boss George Kurtz. The potential deal would value the Mercedes F1 team at an impressive $6 billion, marking one of the highest valuations ever for an F1 franchise.
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For context, Mercedes F1 is a Formula 1 racing team and is jointly owned by team principal Toto Wolff, German automaker Mercedes-Benz, and Sir Jim Ratcliffe’s petrochemicals company, Ineos.
Toto Wolff May Trim Mercedes F1 Stake
According to sources familiar with the matter, CrowdStrike co-founder and CEO George Kurtz is reportedly in talks to buy about a 5% stake in the Mercedes Formula 1 team. Reports further indicate that Wolff owns 33% of the team through a holding company. The potential deal would bring Kurtz into that same holding company. Through this arrangement, Kurtz would acquire his 5% stake in Mercedes F1.
Notably, CrowdStrike and Mercedes F1 have been longtime partners, with the cybersecurity firm’s logo prominently displayed on the team’s cars and race suits. Moreover, Kurtz, a longtime motorsport enthusiast, has competed in hundreds of car races himself.
Mercedes F1 confirmed that the team’s governance structure will remain unchanged. It added that all three partners, including Mercedes-Benz, Wolff, and Ineos, will remain fully committed to the team’s continued success in Formula 1. Following the deal, Wolff would continue to remain as CEO and team principal.
Mercedes F1 Set for Record $6B Valuation
The potential deal for Wolff’s stake would mark a sharp rise in Mercedes F1’s valuation since January 2022, when Ineos bought its 33% share for £208 million.
A $6 billion valuation would make Mercedes F1 one of the most valuable teams in Formula 1 history.
Is Mercedes a Good Stock to Buy?
According to TipRanks, MBGAF stock has a Moderate Buy consensus rating based on five Buys and five Holds assigned in the last three months. At $72.41, Mercedes’ share price target implies a growth rate of over 6% on the current trading level.
