Late last week, Sotheby's announced that the company and the Taubman family had agreed to terminate the process commenced on June 3, 2002, regarding the exploration of a possible sale or merger of the company or sale of the Taubman stake in the company. Over the last several months, Sotheby's and the Taubman family conducted a comprehensive process to explore a possible sale of Sotheby's. Despite considerable interest in the company, a satisfactory transaction could not be reached. Consequently, Sotheby's Board and the Taubman family agreed to terminate the process.
Sotheby's said its financial position had strengthened considerably in recent months. On February 7, it successfully closed the $175 million sale-leaseback of its York Avenue headquarters and secured a $75 million one-year credit facility, thus satisfying the company's need for long-term financing. Additionally, it has significantly reduced its cost base by over $70 million since 2000.
Earlier this month, Sotheby's said it would discontinue regular auctions on Sothebys.com in early May, but would continue to use eBay's Live Auctions technology to enable real-time online bidding for some of its traditional auctions held in New York and London.
