Sotheby's

Sotheby's is the world's second oldest international auction house in continuous operation. It was founded in London, England on 11 March 1744 when English explorer Samuel Baker presided over the disposal of "several hundred scarce and valuable" books from the library of Sir John Stanley, a British politician. Today, the firm has an annual turnover of approximately US $2 billion, maintains offices on London's New Bond Street and Manhattan's York Avenue, and has more than 1900 employees. The auction house deals mainly in fine art, antiques and collectibles, and holds hundreds of sales each year at its auction centers around the world. The organization also maintains an historic rivalry with Christie’s auction house of London.

History

Sotheby’s was founded in 1744 when British bookseller Samuel Baker first auctioned off the library collection of the recently deceased Sir John Stanley, a British politician. The auction featured nearly 500 publications which sold for a total of L826. After his success, Baker quickly became the premier auctioneer of British libraries, later auctioning off collections belonging to Prince Talleyrand, the Marquess of Landsdowne, the Duke of York and the Duke of Buckingham. In 1767, Baker sought a business partner in auctioneer George Leigh, who was known for conducting business with an ivory gavel. After Baker’s death in 1778, his estate was divided between Leigh and Baker’s nephew, John Sotheby.

Under Sotheby, the auction house began the sale of prints, medals, coins and rare antiques in addition to literary collections. In 1864 the auction house took the official name of Sotheby, Wilkinson and Hodge after addition partners were added to the organization. In 1917 the business would move headquarters from London’s Wellington Street to Bond Street where the business stands today. Following World War I, the organization began the sale of country houses, and in the aftermath of World War II, the company gained even more, expanding operations internationally.

International Expansion

In 1955 Sotheby’ opened its first American branch in New York City. Focusing on the sale of Modern and Impressionist art, the company held its first auction devoted exclusively to such works in 1957. In 1964 the company purchased the largest American fine art auction house, Parke-Bernet in New York. This improved profits for the booming organization and lead to the subsequent founding of ten Sotheby branches worldwide, including organizations in Los Angeles, Paris, Florence, Melbourne and Munich. A branch was also opened in Hong Kong in 1973, and purchased Mak van Waay, a Dutch seller of fine art, in 1974. In the same year the company opened an additional four branches for the handling of fine collectibles in Stockholm, Milan, Brussels and Dublin, finally signing an agreement in 1975 which allowed the company to conduct auctions in Monaco.

In the spring of 1977 Sotheby’s opened their company shares to the public whose prices had quickly doubled before year’s end. The company’s success continued into the early 1980’s whereupon the organization was eventually formed, by American businessman A. Alfred Taubman, into Sotheby’s Holdings Incorporated. On November 9th, 1983 Taubman purchased all of Sotheby’s, helping the company to pass the $1 billion mark in annual auction sales in the year following. In July of 1990 Sotheby’s annual sales revenue reached $3.2 billion; in the years following, however, the organization would realize slight setbacks due to an economic downturn which caused hard market troubles in contemporary, modern, and impressionistic art.

Company Scandal

In February 2000, Alfred Taubman and Diana (Dede) Brooks, the CEO of the company, stepped down amidst a company scandal. The Federal Bureau of Investigation, after significant investigation into auction practices, revealed that collusion involving commission fixing between Christie's and Sotheby's was occurring. In October 2000, Brooks admitted her guilt in hopes of receiving a reduced sentence, fully implicating Taubman.

In December 2001, jurors in a high profile New York City courtroom found Taubman guilty of conspiracy. He served one year and one day in prison, and was forced to pay a fine of $7.5 million. Brooks received a six-month home confinement and a penalty of $350,000.

Noteworthy Collections

Sotheby’s first auction, held in London in 1774, earned little more than L800 for a collection of over five hundred books. Since then the company has been involved in some of the most high profile sales of various pieces of art, antiques, and collectibles, ultimately earning the organization international esteem. Some of the company’s most legendary sales are detailed below.

In 1937, Sotheby’s conducted a noteworthy house sale of the pre World War II era. Dispersing the contents of the Rothschild family home, the company netted more than ₤125,000, one of the largest auction values of the time. The auction garnered so much attention that it was broadcasted live by the BBC. By 1946 the company reached an annual sales revenue that exceeded ₤1.5 million, a figure unparalleled for the next eight years.

In October of 1958, Sotheby’s sold the prestigious Goldschmidt Collection, a group of seven paintings sold at a black tie event which gained the attention of celebrities worldwide. The evening event was covered extensively by the international press. The auction lasted just 21 minutes and earned ₤781,000, the largest amount earned by any auction house at the time. Included in the collection was the Paul Cezanne painting entitled Garcon au Gilet Rouge which was sold to Paul Mellon for ₤220,000, a price more than seven times higher than what any other modern painting had fetched to date. At the conclusion of the Goldschmidt sale, the esteemed audience stood on their chairs and cheered.

In June of 1959, Sotheby’s sold the acclaimed Adoration of the Magi, a 1634 altarpiece painted by the artist Rubens. The piece sold for ₤275,000 after just two minutes of bidding. Offered by the Duke of Westminster, the painting measured 8 feet by 12 feet and required temporary structural changes to Sotheby’s main gallery in order to auction it off. During the same auction, Sotheby’s set yet another record when it auctioned off the Westminster Tiara for ₤110,000, marking a value more than double what any other piece of jewelry had earned at auction at the time. The diamond crown featured two pearl shaped diamonds, known as the Arcot Diamonds, and was adorned with 1,240 smaller stones. The tiara was purchased by Harry Winston.

In 1976 the company opened its Swiss operations to auction off a winter jewelry collection. In a May auction, the company sold the renowned Pink Diamond for a total of $1.09 million. In 1987 Sotheby’s auctioned off the Duchess of Windsor’s Jewels for a total of ₤31 million, followed by the sale of Vincent Van Gogh’s Irises for a total of $53.9 million. In February 1998 the company auctioned off the personal effects of the Duke and Duchess of Windsor which garnered enormous media attention. A piece of the Windsor’s wedding cake, in its original box, earned nearly $30,000. The sale attracted more than 1,000 buyers to the auction house.

In May of 2006, Sotheby's auctioned Pablo Picasso's portrait Dora Maar with Cat which was sold for $95 million, becoming the second most expensive artwork sold at an auction. However, in June of the same year, Gustav Klimt’s Portrait of Adele Bloch-Bauer I was sold in a private sale for $135 million, which reduced Dora Maar with Cat to third place on the highest price ever paid for a painting.

The previous first place holder for the most expensive auctioned artwork was Garçon à la pipe also painted by Picasso and was auctioned by Sotheby's in 2004 for a price of $104 million. Adjusted for inflation, the Picassos take fourth and fifth place, with a Renoir sold at Sotheby's in third and a Van Gogh sold at Christie's in second.

References

ISBN links support NWE through referral fees

• Hoover's, Inc., 2007. Sotheby's Company Profile. Answers.com 15 May. 2007.
• International Directory of Company Histories. The Gale Group, Inc, 2006. Sotheby's. Answers.com 15 May. 2007.
• Sotheby's Corporate Information: History. Sotheby's.com Retrieved 15 May 2007.

External Links

• Sotheby's Official Website. 15 May 2007.
• Six World Records Set at Sotheby's International Herald Tribune. 15 May 2007.

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