Billionaire Patrick Drahi agrees to buy Sotheby's in $5 billion deal

Billionaire Patrick Drahi agrees to buy Sotheby's in $5 billion deal”

Billionaire entrepreneur and art collector Patrick Drahi is taking auction house Sotheby's private in a deal valued at $3.7 billion.

Since he established the company in the Netherlands in 2001, Drahi has built it into a multinational, broadband, telecommunications, media, digital, and advertising company.

"This acquisition will provide Sotheby's with the opportunity to accelerate the successful programme of growth initiatives of the past several years in a more flexible private environment", he added.

By having been public, in many ways, Sotheby's operated at a competitive disadvantage to its main US rival, Christie's, which was already private, experts said.

The deal, which is expected to close in the fourth quarter of this year pending shareholder approval, would return Sotheby's to the private market after 31 years as a public company.

BidFair USA, an entity wholly owned by Drahi, will pay $57 per share for Sotheby's, which is a 61% premium to the company's closing stock price on Friday.

In 2012, it sold Edvard Munch's The Scream.

Track Sotheby's stock price here in real time.

A report published by Swiss bank UBS and Art Basel in March said that the global art market had enjoyed another uptick in 2018. The proposed deal provides a massive premium to recent prices, but is considerably more modest when compared with the levels Sotheby's traded at this time previous year.

The following year he made his dramatic entry into the USA market, snapping up cable company Suddenlink in a $9 billion deal in 2015, then Cablevision for $17.7 billion in 2016 and in April, the U.S. financial video news start-up Cheddar.

"Sotheby's is one of the most elegant and aspirational brands in the world". Drahi has also been selling non-core assets in recent years to ease concerns over the debt levels of his businesses.

The Israeli-French media tycoon is the founder, board president, and controlling shareholder of Altice Europe.

About five years ago Sotheby's ended a long-running fight with activist investor Daniel Loeb's hedge fund Third Point, by asking Loeb and two associates to join Sotheby's board, and Loeb was instrumental in hiring Smith as CEO. French online art sales database ArtPrice lists him as the 252nd biggest art collector worldwide.

The price "affirms the value we saw when we first invested in Sotheby's, and rewards long-term investors like Third Point who believed in its potential", Loeb told Reuters.

The boutique advisory firm LionTree is serving as financial advisor to Sotheby's on the deal, while BNP Paribas and Morgan Stanley are acting as financial advisors to BidFair USA.

Like this



18 June 2019
Facebook's cryptocurrency gets $10m each from Uber, Paypal, Mastercard and Visa
Facebook's debut into the world of cryptocurrency could be just days away. The white paper is expected to be published on June 18 .

18 June 2019
Woman arrested after she pushed her dog in lake, watched it drown
Police say a New Hampshire woman is charged with shoving her golden retriever off a dock and standing by while the pet drowned. Bailey drowned in 3 1/2 feet of water. "They unfortunately weren't able to revive the dog and it did die".

18 June 2019
LaMelo Ball Announces Where He’ll Be Playing In 2019-20
He is eligible for Thursday's NBA Draft. "I just think it is the best route for me". I'm trying to be the No. 1 pick for the 2020 draft.

18 June 2019
Bangladesh win toss, opt to field first against West Indies
The highest chase in the current World Cup prior to the masterclass from Mashrafe´s men was New Zealand´s 248 against Bangladesh . The bowling was too one-dimensional and they now need to rethink their tactics if they have to make it to the next stage.

18 June 2019
US releases new photos it says incriminate Iran in tanker attacks
The attacks occurred around the time Abe was meeting with Iranian Supreme Leader Ayatollah Ali Khamenei in Tehran. The Pentagon released the photos to bolster its claim that Iran was responsible for the attacks.

18 June 2019
O.J. Simpson denies sleeping with Kris Jenner
While Simpson was found not guilty, he was found liable in a civil case, but most of the $33.5 million judgment has not been paid. Meanwhile, O.J. has kept a low profile since his release from prison in October 2017, after serving time for an unrelated crime.

18 June 2019
Compatibility of Love Island couples put to the test
It is reported the Islander was singing Drake song Over My Dead Body , which features the offensive word several times. A spokesperson said: "We monitor the islanders 24/7 and we have no recording of the use of this offensive language".

18 June 2019
Phoenix couple who say police drew guns on them want officers fired
According to police, officers were called to the Family Dollar store by a manager reporting a shoplifting at 11:17 a.m. on May 27. The incident took place after one of the children had reportedly shoplifted a doll from a store without her parents realizing it.

18 June 2019
Elon Musk Doesn't Learn, Posts Uncredited Artwork, Deletes Tweet
An offer never materialized, and the Securities and Exchange Commission later accused Musk of using Twitter to mislead investors. As of this writing, the tweet has 125,000 likes-far more than the number of likes he normally gets on other tweets.

18 June 2019
Tony Parker announces retirement from basketball
Parker said his decision was partially influenced by missing his time as a Spur and being away from his family in the Alamo City. Additionally, he told The Undefeated, he'll open an global school in Lyon, France, called the Tony Parker Adequat Academy.