Interesting to reread this article 5 months later. Mercedes walked away from the Alpine F1 deal in May because Otro’s $720 million asking price for 24% stake implied a $3 billion valuation, while Mercedes reportedly valued Alpine F1 at ~$2.3 billion. Horner’s calculation includes the value of returning to F1 with equity and influence, which explains why his consortium might pay more.
September ends the current restriction on Otro’s stake, but it does not solve the question of control. Renault will still own 76%, and buying the minority position would give Horner equity without the Wolff-style operational authority he appears to want. Only Renault can provide that. If Renault views Horner as an aligned partner, it may have an incentive to structure a deal before September, while ownership and operational authority can still be negotiated together.
Exactly. Flavio Briatore’s view that Toto Wolff’s Alpine F1 24% stake offer was fair and Otro’s price was not reflects the gap between owning equity and exercising control. Christian Horner may value the stake more highly if Renault also grants him operational authority. Meanwhile, Flavio is watching from the sidelines while already exercising considerable influence over the team without investing in the equity himself.
His acquisition of 33% stake in Mercedes valued at $165M will be one of the most underrated and wild sports value-building stories.
Today the stake is valued at beyond $2 billion, of which he has also done a partial sale. Absolute legend of the sport of F1 and in his own league as a man.
Excellent article, so interesting to read about his childhood.
Glad you enjoyed it!
Interesting to reread this article 5 months later. Mercedes walked away from the Alpine F1 deal in May because Otro’s $720 million asking price for 24% stake implied a $3 billion valuation, while Mercedes reportedly valued Alpine F1 at ~$2.3 billion. Horner’s calculation includes the value of returning to F1 with equity and influence, which explains why his consortium might pay more.
September ends the current restriction on Otro’s stake, but it does not solve the question of control. Renault will still own 76%, and buying the minority position would give Horner equity without the Wolff-style operational authority he appears to want. Only Renault can provide that. If Renault views Horner as an aligned partner, it may have an incentive to structure a deal before September, while ownership and operational authority can still be negotiated together.
I wrote a Flavio article for the series and he essentially said Toto's offer had been very fair and be thinks Otro
was not being fair. It's interesting how it all comes down to what often matters more than money: control.
Exactly. Flavio Briatore’s view that Toto Wolff’s Alpine F1 24% stake offer was fair and Otro’s price was not reflects the gap between owning equity and exercising control. Christian Horner may value the stake more highly if Renault also grants him operational authority. Meanwhile, Flavio is watching from the sidelines while already exercising considerable influence over the team without investing in the equity himself.
really interesting
Glad you think so :)
What an insightful read!
So glad you enjoyed it :)
Never heard of Toto Wolff. Will definitely read up on him.
Never heard of Toto Wolff. Great article. Would be interested in learning more.
A beautifully crafted article on one of Formula One's most intriguing team principals and investors
Thank you, so glad you enjoyed it!
Very inspiring. Because of our trauma, we can see where—and how—we can become more resilient, in ways others often take for granted.
So true! Glad you enjoyed it. xx
I’ve spent the last year analyzing the monetization and engagement models of f1 teams vs f1.
I’m not sure how the substack algorithm chose to show me this, because I haven’t told anyone about it.
What a great article! I’m so glad I found your substack.
Ahhhh that is so nice of you to say. The Algorithm knows everything I suppose :)
Great piece
Thanks Jim!
Brilliant
Glad you enjoyed it :)
Awesome read and progression Lali!
Thank you Marshal!
Toto Wolff turned pressure into performance, that’s the real edge at the top!
He's a legend.
Great piece to read this Sunday AM
Love to hear it!
His acquisition of 33% stake in Mercedes valued at $165M will be one of the most underrated and wild sports value-building stories.
Today the stake is valued at beyond $2 billion, of which he has also done a partial sale. Absolute legend of the sport of F1 and in his own league as a man.
It's an incredible story!
Thank you for writing this up, truly inspirational!
So kind, thank you. Happy it resonated with you!