Luxury auction house Sotheby’s has acquired an ownership interest in RM Auctions, creating a dynamic duo of great magnitude now dubbed ‘RM Sotheby’s’. Their first joint sale took place in Florida last month with a record $60 million in collector cars changing hands.
Sotheby’s now owns a 25 percent share in RM Auctions in a long-term investment strategy to cater to the burgeoning market. Analysts peg the market for collector cars at a staggering $2 billion, making the partnership a seemingly wise move in terms of creating a larger fishing net than those wielded by competing auction houses. This is not the first time the pair has joined forces—recall the ‘Art of the Automobile’ auction back in 2013. That team effort ended in $63 million in sales in just 2 hours, with the Ferrari 250 LM going for $14.3 million. That sale and a few other joint efforts were but the beginning of this now legal union, which is certain to flourish as the economy continues to regain strength.
RM Auctions enjoyed phenomenal success in Monterey last year with $140 million in sales. Because both companies cater to the same types of collectors and there is much overlap, the alliance makes complete business sense. According to RM Auctions CEO and founder Rob Myers: “The partnership that has been formed between RM Auctions and Sotheby’s is undoubtedly the most effective way for us to reach the ever-growing worldwide audience of collectors who take a keen interest in the collector car asset class. No other organization in the world has a client base as far-reaching as Sotheby’s and since we have worked so closely and successfully with them in the past, it makes perfect sense that we form a strategic partnership that creates a truly worldwide platform for collector cars. It’s an exciting time in our company history, and for the hobby at large.” Sotheby’s returned the flattery by referring to RM Auctions as the clear market leader.
Additional RM Sotheby’s auctions are slated for Fort Worth, Texas, Lake Como, Italy, Monterey, California, London, England, New York and more locations will emerge as they are announced. Sotheby’s will have the opportunity to increase ownership as the relationship grows. Overall, it will still be some time before the entity is only remembered as a set.
Post by Imagine Lifestyles