Profile: Sotheby'S (BID.N)
44.81USD
1:22pm EDT
$0.18 (+0.40%)
$44.63
$44.48
$44.99
$44.14
57,023
296,093
$45.96
$27.64
Sotheby’s, incorporated on March 30, 2006, is a global auctioneer of authenticated fine art, decorative art, and jewelry. The Company operates in three segments: Auction, Finance, and Dealer. Auction segment functions as an agent by offering works of art for sale at auction and by brokering private sales of artwork. Sotheby’s also purchases and resells works of art through its Dealer segment, conducts art-related financing activities through its Finance segment and is engaged, to a lesser extent, in brand licensing activities.
Auction Segment
Sotheby’s Auction segment functions as an agent by accepting property on consignment, stimulating buyer interest through professional marketing techniques, and matching sellers (also known as consignors) to buyers through the auction or private sale process. Sotheby’s invoices the buyer for the purchase price of the property (including the commission owed by the buyer), collects payment from the buyer and remits to the seller the net sale proceeds after deducting its commissions, expenses and applicable taxes and royalties. Sotheby’s auction commissions include those paid by the buyer (buyer’s premium) and those paid by the seller (seller’s commission) (collectively, auction commission revenue). During the year ended December 31, 2012, auction commission revenue accounted for 81% of Sotheby’s consolidated revenue.
Finance Segment
Sotheby’s Finance segment provides certain collectors and art dealers with financing secured by works of art that Sotheby's either has in its possession or permits borrowers to possess. The Finance segment makes two types of secured loans: advances secured by consigned property to borrowers who are contractually committed, in the near term, to sell the property at auction (a consignor advance) and general purpose term loans secured by property not presently intended for sale (a term loan). A consignor advance allows a seller to receive funds upon consignment for an auction that will occur up to one year in the future. Term loans allow Sotheby's to establish or enhance mutually beneficial relationships with borrowers and may generate future auction consignments or may be used to facilitate certain auction or private purchases. The activities of the Finance segment are conducted through Sotheby’s wholly owned subsidiaries.
Dealer Segment
Sotheby’s Dealer segment includes the activities of Noortman Master Paintings (NMP), an art dealer that sells works of art from inventory directly to private collectors and museums and, from time-to-time, acts as a broker in private purchases and sales of art. The activities of the Dealer segment also include the purchase and resale of artworks directly by Sotheby’s and, to a lesser extent, retail wine sales and the activities of certain equity investees, including Acquavella Modern Art (AMA). Under certain circumstances, the Dealer segment, with the assistance of Finance segment employees, sometimes provides secured loans to certain art dealers to finance the purchase of works of art. In these situations, the Dealer segment acquires a partial ownership interest in the purchased property in addition to providing the loan. Upon its eventual sale, the loan is repaid and any profit or loss is shared by Sotheby's and the art dealer according to their respective ownership interests.
The Company competes with Christie’s International, PLC, Bonhams, Phillips, Beijing Poly International Auction Co. Ltd., China Guardian Auctions Co. Ltd., and Beijing Hanhai Auction Co. Ltd.
Company Address
Sotheby'S
1334 York Avenue
NEW YORK NY 10021
P: +1212.6067000
F: +1212.6067107
Company Web Links
| Name | Compensation |
|---|---|
William Ruprecht |
6,300,400 |
Peregrine Cavendish |
-- |
William Sheridan |
1,896,410 |
Kevin Ching |
1,794,760 |
Bruno Vinciguerra |
2,726,760 |
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