(Bloomberg) -- ADQ, an Abu Dhabi sovereign wealth fund, has signed a definitive agreement to acquire a minority interest in Sotheby’s, the auction house announced. Its owner, the telecom billionaire Patrick Drahi, will also invest additional capital into the business.
Together, both investments amount to $1 billion. The bulk of the investment will come from ADQ, a Sotheby’s spokesperson confirmed. The spokesperson added that ADQ’s investment is in shares of the company that are newly issued, and that Drahi remains a majority shareholder.
The auction house declined to comment beyond providing a written statement that reads in part, “This marquee investment will support Sotheby’s in delivering its ambitious growth agenda while accelerating its expansion into new markets, including establishing an even more robust presence in the Middle East, as Abu Dhabi continues to strengthen its arts and culture offering domestically.”
The release quotes Sotheby's CEO Charles Stewart, who adds that “the additional capital and investment expertise will enable us to accelerate our strategic initiatives, expand our commitment to excellence in the art and luxury markets, and continue to innovate to better serve our clients around the world.” It also quotes Hamad Al Hammadi, deputy group chief executive officer of ADQ, who states “Our investment underscores our firm belief in the enduring value of Sotheby’s brand, market leading platform and the ability of its management to execute on their growth agenda.”
The announcement comes during a turbulent period in the auction market. Last year, Sotheby’s reported consolidated sales of $7.9 billion, a total that includes car and real estate auctions. The total was very slightly lower than the year before. More broadly, the art market has contracted, with global sales dropping 4% from 2022 to 2023, according to a joint report from Art Basel and UBS Group AG.
The transaction is expected to close by the end of the year.
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(Updates with details on Abu Dhabi’s wealth funds in first paragraph, and additional quotes and context provided by Sotheby's in third and fourth paragraphs.)
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