The world’s top auction houses are in the throws of a major digital upgrade.
New York-based
and Berlin-based Auctionata have announced that the two companies are merging, and looking to claim the 'middle market' of the international auction industry.
The middle market in the auction world includes items priced up to $500,000, an area in which Paddle8 and Auctionata have both made a sizable dent. Auctionata found success in the realm of vintage luxury goods (watches, wine, cars and jewelry) and pioneered the concept of online live auctions. Paddle8 specializes in contemporary art sales on its online platform, appealing to a digitally-savvy audience of collectors.
Now, instead of battling it out in the underserved middle market, the two companies are joining forces — all in the name of access.
“The original thesis for Paddle8 was driven around a personal motivation,” Paddle8 co-founder and CEO Osman Khan said. “We found it used to be a very challenging market to access in terms of where do you go, how do you buy and who do you ask for recommendations.”
This merger is hoping to change that by creating a one-stop-shop for collectors to buy everything they want.
Among traditional auction houses, where high-end incumbents such as Christie’s and Sotheby’s reign supreme, the average collector transacts across 11 categories. These categories can run the gamut from fine art to wine to jewelry etc., and a collector has to use a different auction house for each category.
“The combined problem we’re solving is the inability of an auction collector in today’s world to have a single destination to buy all the things they want to buy," said Khan. "Instead of going to five different auction houses to buy wine, art, watches, etc., you can now buy all of that here with a unique and exceptional customer experience unlike ever before.”
According to Khan, the two brands will continue to operate as individual entities for the foreseeable future, but are planning on integrating the two companies on cultural and operational levels.
In the upcoming months, the new company will be expanding its team by investing in new hires across sales, technology and marketing, both domestically and abroad.
While the merged companies have not decided on a new headquarters yet, Khan hinted that the joined organization will likely make its home in either New York City or London, the global capitals in the auction world, respectively.
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