Leon Black’s Phaidon Buys Artspace in Wager on Web Sales
Billionaire Leon Black’s publishing company Phaidon acquired Artspace.com, an Internet startup that sells works by contemporary artists, as investors struggle to figure out how to make money from art online.
Phaidon, a publisher of art and design books, agreed to buy Artspace, the companies said today in a statement without disclosing the price. The deal is the latest in a wave of mergers and partnerships shaking up the Internet art market even as profit in the nascent industry remains elusive.
“The new gold rush is online and it has been spreading into the art market,” said Alain Servais, a Belgium-based collector and independent investment banker. “The question is how to monetize the Internet.”
Demand Media Inc. (DMD), a Santa Monica, California-based digital content and media company, last week paid $17 million in cash and stock for Saatchi Art, which offers works by 45,000 artists online. Sotheby’s last month said it’s forming a partnership with EBay Inc. (EBAY) to expand its auctions to the online marketplace’s 149 million buyers. Amazon Art was started by Amazon.com in 2013 to sell fine art from international galleries.HT: Art Market Monitor
On Aug. 18, a group of six regional U.S. auction houses will start BidSquare, an Internet platform selling art and collectibles. It will feature a free database of more than 600,000 auction results....MORE
See also July's "Sotheby’s eBay Deal Bumps Stock Over Crucial Barrier" (BID; EBAY)
