Famed Auction House Sothebys Sold for $3.7 Billion
The business wars daily is brought to you by Staples work is changing, but Staples is changing right along with it. The new Staples delivers solutions to help your team be more connected productive, and inspired. Learn more at Staples dot com slash change. From wondering, I'm David Brown and this business wars daily on this Monday, June twenty fourth. Sotheby's the famed auction house just closed its biggest sale ever. It sold itself to French Isreaeli businessman Patrick, dry for three point seven billion dollars dry. He is a telecom and cable industry tycoon. He founded European cable company. I'll tease in two thousand one and has a reputation for building a global business empire through acquisitions and aggressive cost-cutting. But the Wall Street Journal has already reassured art lovers to mention Sotheby's employee's the dry. He won't bring that cutthroat strategy to his newest acquisition rather, he's buying the auction house for art's sake. The journal says and art lover himself draw. He owns works by Picasso Matisse and Chagall and. His long admired the auction company, which was founded in London in seventeen forty four at least now draw he plans to hold onto Sotheby's for the long term and help it grow the first step. He intends to take these private ending. It's thirty one year stint on the new York Stock Exchange. The idea is that going private will help Sotheby's compete with its arch-rival Christie's Christie's is a private company also owned by a French businessman, the two companies often scrap over lucrative consignment deals to sell multi million dollar artworks in collectibles to seal those deals auction houses often discount their commissions, but as a privately, held business Christie's had more latitude to shave its commissions and make big deals than Sotheby's did since Sotheby's had to report those details to shareholders that latitude makes a difference over the last year. Both Christie's and Sotheby's have done well, booed by a healthy economy. But in absolute terms, Christie's fared better than Sotheby's by more than a half of a billion dollars. Christie's is seen as the winner in the art collection duopoly in part because it has captured some gasp worthy deals in 2017 it sold a rediscovered Leonardo Davinci painting for a record price of four hundred fifty million dollars. And last year it sold the art collection of Peggy and David Rockefeller for a record price as well. Eight hundred thirty five million dollars under draw. He's ownership Sotheby's should prove to be a more aggressive rival, and that won't just be an in-person auctions, but online as well. The company intends to expand on a strategy that already started boosting its digital sales are collectors still politely raised their hands at live auctions to bid on old masters, but more and more often younger art buyers are bidding online, Sotheby's soul, two hundred twenty million dollars worth. Of art online last year up twenty four percent from twenty seventeen the Wall Street Journal reported, it's too soon to know whether taking Southeby's private, and pushing online sales will help Sotheby's surged past Christie's or not. But one thing is clear Patrick draw. He is already proved himself to be artful at growing companies now. We'll see whether he'll be successful at painting, a new future for Southeby's. From wondering this is business daily if you like our show, sure would appreciate a review and a rating on your favorite podcast app. I've David Brown, and we'll be back with you tomorrow. Business wars. Daily is brought to you by Staples. The world of work is changing faster than ever before a week ago open floor plans were in. Now, they're out the pace of our evolving work lives can feel overwhelming. But Staples can help not the old stables, but a new Staples that delivers solutions to help your team be more connected productive, and inspired work may be constantly changing. But Staples is changing right along with it to support you. Learn more at Staples dot com slash change.