Sotheby’s acquired by telecom mogul for $3.7 billion

June 17, 2019

Auction house Sotheby’s is going private after Patrick Drahi, a 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 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, founded in 1744, has traded publicly on the New York Stock Exchange for 31 years. Shares of the company jumped more than 59% before the market open on Monday.

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