Sotheby’s Down Bad With Auction Giant Posting Big Losses

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Summary

  • Sotheby’s revenue dropped nearly 20 percent in 2024, posting a $248 million USD pre-tax loss as the art market slowed
  • The auction house secured a $909 million investment from Abu Dhabi’s ADQ to pay down debt and buy a new Madison Avenue building

Sotheby’s, a leading auction house with a 280-year history, experienced a difficult 2024. Sales fell almost 20%, indicating a decline in purchases of high-end art and collectibles and resulting in significant financial losses for the company.

Sotheby’s revenue fell to $1.13 billion in 2024, according to financial documents filed in Luxembourg, a decrease from $1.36 billion the previous year. The company also experienced a significant increase in losses, reporting a pre-tax loss of around $248 million – more than double the $106 million loss from 2023.

Sotheby’s, a major auction house, has been facing challenges recently. Their earnings from commissions and fees have decreased as demand for high-value items slowed down. The overall art market has been weak, impacting even established companies like Sotheby’s. Last year, a significant investment from Abu Dhabi’s ADQ fund – a $909 million USD purchase of a 24% stake – helped Sotheby’s reduce its debt and invest in a new building on Madison Avenue in New York, with additional funds provided by owner Patrick Drahi.

Sotheby’s is evolving beyond traditional auctions. They’re now involved in art financing, real estate, and relying on investors to stay afloat. However, with sales continuing to decline, it remains to be seen if this historic auction house can adapt and thrive in a market increasingly driven by trends and social media.

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2025-09-17 21:55