Franco-Israeli telecom entrepreneur Patrick Drahi is acquiring Sotheby's, the world's largest art auction house, for $3.7 billion, Sotheby's reported today.
BidFair USA, owned by Drahi, will pay $57 per Sotheby's share in cash. Sotheby's will become a private company. The price in the deal is a 61% premium on last Friday's $35.39 closing share price on Wall Street, representing a $26 billion market cap.
Sotheby's share is skyrocketing 60% in pre-trading in New York to its highest point in 11 months. Closure of the deal is slated for the fourth quarter this year.
Drahi, a renowned art collector, controls Israeli communications company HOT through Altice, another company under his control.
When the announcement was made, Sotheby's president and CEO Tad Smith said, "Patrick Drahi is one of the most well-regarded entrepreneurs in the world, and on behalf of everyone at Sotheby's, I want to welcome him to the family. Known for his commitment to innovation and ingenuity, Patrick founded and leads some of the most successful telecommunications, media and digital companies in the world. He has a long-term view and shares our brand vision for great client service and employing innovation to enhance the value of the company for clients and employees. This acquisition will provide Sotheby's with the opportunity to accelerate the successful program of growth initiatives of the past several years in a more flexible private environment. It positions us very well for our future and I strongly believe that the company will be in excellent hands for decades to come with Patrick as our owner."
Published by Globes, Israel business news - en.globes.co.il - on June 17, 2019
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