Mercedes F1 chief Toto Wolff to sell stake at $6bn valuation

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favorite tales on this weekly publication.Mercedes Method 1 chief Toto Wolff is in superior talks to promote a part of his stake at a $6bn valuation, in a deal that might mark a file for an F1 crew and underscore the game’s business success underneath US possession.The deal underneath dialogue would contain Wolff bringing an out of doors investor into the holding firm that owns his 33 per cent stake within the Mercedes F1 crew, based on an individual with information of the matter. It might lead to an out of doors investor taking a stake of about 5 per cent within the crew, the individual stated. Wolff would stay as chief government and crew principal.“The governance of the crew will stay unchanged, and all three companions (Mercedes-Benz, Toto and Ineos) are totally dedicated to the continuing success of Mercedes-Benz in Method 1,” Mercedes F1 stated in an announcement. Wolff, German carmaker Mercedes-Benz and Sir Jim Ratcliffe’s petrochemicals firm Ineos every personal a 3rd of the crew. Mercedes-Benz Grand Prix, the corporate that operates the F1 crew, reported revenues of £636mn in 2024, up from £546mn the earlier yr. Pre-tax revenue rose to £163mn from £115mn in the identical timeframe. The corporate proposed a remaining dividend for the yr of £125mn.The deal for Wolff’s stake would characterize a major improve in valuation since January 2022, when Ineos paid £208mn for its 33 per cent stake. The potential stake sale was first reported by Sportico.A $6bn valuation would set a high-water mark for an F1 crew. In September the Center Jap backers of McLaren Racing — Bahrain’s sovereign wealth fund Mumtalakat and Abu Dhabi funding group CYVN Holdings — took full possession of the crew in a deal valuing it at greater than £3bn. That valuation was greater than 5 occasions the £560mn ascribed to McLaren in a fundraise in December 2020.Racing groups have soared in worth since John Malone’s Liberty Media took over F1 in 2017 and efficiently attracted a brand new era of followers. Netflix documentary collection Drive to Survive was a worldwide hit, significantly within the US, and catapulted Wolff and different F1 chiefs into the highlight. Since becoming a member of Mercedes in 2013, Wolff has led the crew to seven drivers’ championships and eight constructors’ titles. Sir Lewis Hamilton delivered the crew’s success on the observe for a lot of Wolff’s reign, however the British driver departed for Italian rival Ferrari this yr after the crew’s automobile was beset with issues.Mercedes sits second on this season’s constructors’ championship, which has already been received by McLaren with three races remaining. Mercedes drivers George Russell and Kimi Antonelli sit fourth and seventh within the drivers’ standings respectively.Wolff was among the many government producers on F1 The Film, which was launched by Apple earlier this yr and grossed greater than $630mn on the field workplace.