Sotheby's acquired by telecom mogul for $3.7 billion

Auction house Sotheby's is going private after Patrick Drahi, a billionaire telecommunications executive and art collector, offered $3.7 billion for the 250-year-old auction house.

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. Drahi, 54, founded Altice, a broadband provider that operates Cablevision and Cequel, in 2001.

"Sotheby's is one of the most elegant and aspirational brands in the world," Drahi said in a statement, adding that he was a longtime client of the company.

Sotheby's CEO Tad Smith said that the deal would let the company flourish "in a more flexible private environment," according to a written statement.

The New York company, which was founded in London in 1744, presents auctions in 10 salesrooms worldwide. Last year the company's net income totaled $108.6 million, or $2.09 per share, on revenue of $1.04 billion. Adjusted profit totaled $128.9 million, or $2.48 per share.

Sotheby's has traded publicly on the New York Stock Exchange for 31 years. Shares of the companys jumped $20.39, or 57.6%, to $55.78 in Monday morning trading. Before Monday the stock was down 11% in the year to date.

The deal is expected to close in the fourth quarter. It's subject to shareholder approval and regulatory clearance.

f

We and our partners use cookies to understand how you use our site, improve your experience and serve you personalized content and advertising. Read about how we use cookies in our cookie policy and how you can control them by clicking Manage Settings. By continuing to use this site, you accept these cookies.