Mercedes F1 Confirms Ownership Shake-Up as CrowdStrike CEO Buys Stake in Toto Wolff's Holdings

Mercedes Grand Prix has announced a significant shift in its ownership structure, as CrowdStrike CEO George Kurtz has acquired a 15% share in Toto Wolff's holding company, Motorsport Investment Limited. This move signals a strategic investment and a deepening of the relationship between the F1 team and the cybersecurity giant.

Why it matters:

After years of stable, equal ownership between Toto Wolff, Mercedes-Benz, and INEOS, this transaction marks a notable change in the team's financial structure. The investment by George Kurtz not only injects capital but also brings a tech-savvy entrepreneur and experienced racer directly into the team's strategic core, reinforcing Mercedes' commitment to leveraging technology and expanding its presence in key markets, especially the US.

The Details:

• New Co-Owner: George Kurtz, founder and CEO of CrowdStrike, has officially become a co-owner of the Mercedes F1 team. He acquired a 15% stake in Toto Wolff's personal holding company, Motorsport Investment Limited.
• Strategic Role: Kurtz will also assume the role of the team's new Technology Advisor and join the strategic steering committee, alongside Ola Kallenius (Chairman of Mercedes), Sir Jim Ratcliffe (INEOS), and Toto Wolff.
• Team Valuation: While the exact purchase price remains undisclosed, Kurtz's investment in 15% of Wolff's holding company, which equates to roughly 5% of Mercedes F1, is believed to value the team at approximately $6 billion. This valuation surpasses the recent McLaren stake sale which valued that team at around $5 billion.
• No Governance Change: Despite the shift in Wolff's overall ownership percentage, his voting power at the board level remains unchanged. He will continue in his roles as CEO and Team Principal, ensuring continuity in leadership and operational management.
• Deepened Partnership: This investment builds on an existing relationship, as CrowdStrike has been a partner of the Mercedes F1 team since 2019. Kurtz's new role will focus on expanding the team's engagement within the US and global technology sectors.

Between the lines:

This move could be seen as Toto Wolff realizing some of the substantial gains from his initial investment in the team, which was valued at $165 million in 2013, with his stake increasing by an estimated $1.7 billion over 13 years. Beyond the financial aspect, bringing in a figure like Kurtz—a successful tech entrepreneur and a seasoned endurance racer—underscores F1's increasing focus on technology, data, and expanding its appeal in crucial markets.

What's next:

Kurtz's unique blend of expertise in technology and motorsport is expected to contribute to Mercedes' continued pursuit of competitive advantage. His involvement as Technology Advisor and a member of the strategic steering committee is likely to foster innovation and help the team explore new opportunities, particularly in leveraging technology for performance and engagement in the rapidly growing US F1 market. The long-term implications of this new ownership dynamic will unfold as Mercedes continues its quest for championship success.