Pulling Mercedes out of Formula 1 would be "crazy" right now, Daimler CEO Ola Kallenius admits.

There has been speculation over the future of the German manufacturer's works team throughout 2020, with Toto Wolff and Lawrence Stroll initially linked to a takeover before it was suggested INEOS could take a majority stake.

Instead, Daimler recently reaffirmed its commitment to the Brackley-based squad but announced AMG branding would be more prevalent, even if the team will still be known as Mercedes.

And on that decision, Kallenius made it clear F1 remained very attractive commercially.

"We reassessed our Formula 1 involvement at the beginning of the year," he told Germany's Manager Magazin.

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"The prices for television rights are rising significantly. Asia, Europe, South America, interest in Formula 1 is growing everywhere.

"And the number of our young fans is exploding, especially through social media and esports. Should we throw this away? We'd be crazy."

Not only that, but fears over costs have been eased somewhat by the new budget cap as well as the partnership with INEOS.

"He is happy that we are halving the costs and getting new advertising partners," the Daimler chief said of the view of Chief Financial Officer Harald Wilhelm.

"Our Formula 1 team goes from a cost centre to a valuable company, almost like Bayern Munich."

Despite his current enthusiasm, however, Kallenius has made it clear the future commitment to F1 depends on the sport meeting its sustainability target of being carbon-neutral by 2030.

"We will continue to hybridise cars, we could switch to synthetic fuels," he noted. "Formula 1 will also become CO2-neutral. Otherwise, the races would really become yesterday's event."