Sotheby’s is laying off staff as a result of its current operational overhaul, following the conclusion of its fierce battle with investor Daniel Loeb.  “As part of a long-range planning process begun earlier this year, Sotheby’s has identified areas for growth and additional investment,” the company said in a statement last week.  “To capture these opportunities in an ever-evolving business, the company has decided to reallocate staff and resources.” (more…)

Investor Daniel Loeb has officially been acknowledged as one of Sotheby’s newest board members, alongside two of his own candidates, expanding the auction house’s board to 15 members.  The appointment was part of a May 5th agreement between Sotheby’s and Loeb, and brings in jewelry designer Olivier Reza and Harry J. Wilson to help lead the company.   (more…)

A Delaware judge has rejected Daniel Loeb’s lawsuit seeking to overturn Sotheby’s shareholder rights plan, which had prevented activist investors from owning more than 10% of the company.  “I find that the plaintiffs have not demonstrated that they have a reasonable probability of success on the merits of their claims,” Judge Donald Parsons wrote in his decision. “Therefore, I deny the plaintiff’s motion for a preliminary injunction.” (more…)

In a recent investor presentation, Daniel Loeb outlined his five point plan for bringing Sotheby’s back to profitability, pushing his case for allowing Third Point a more vocal position in the company’s proceedings.  Loeb’s plan includes action points on curated auctions and private sales, attacks on the company’s planning on its S|2 Gallery, and inquiries into how to utilize the auction spaces during downtime.   (more…)

New York Magazine has published a detailed summary of the current situation at Sotheby’s, including the departure of longtime auctioneer Tobias Meyer, the friction between Daniel Loeb and Sotheby’s head Bill Ruprecht, and most notably, Loeb’s often incisive perspective on dealing with companies he wants to turn around.  “Sometimes a town hanging is useful,” Loeb once told Bloomberg Markets, “to establish my reputation for future dealings with unscrupulous CEOs.”  (more…)

Following the open letter written to Sotheby’s by Daniel Loeb, the auction house has responded to its shareholders, detailing a “poison pill” strategy to ward off any attempts at a hostile takeover of the company.  The plan, which initiates a dividend offer for any share of outstanding stock, is triggered if any shareholder takes over 10% of the company’s stock. “The board had to respond to the attack and it is unsurprising they took this type of stance. But observers will be much more concerned after the events of this week. They are not out of the woods yet,” said Michael Plummer, a principal at ArtVest Partners. (more…)

Hedge Fund Billionaire Daniel Loeb has gone on the offensive towards Sotheby’s Auction House today, calling for the resignation of company chairman, CEO and president William Ruprecht for his alleged lack of leadership and excessive pay.  Loeb recently became a leading stock holder in the auction house with his activist investment firm Third Point, and many forecast that he will use his position to force major changes in Sotheby’s operating model.   “Our research suggests Sotheby’s crisis of leadership has created dysfunctional divisions and a fractured culture. There is a demoralizing recognition among employees that Sotheby’s is not at the cutting edge,” Loeb writes in an open letter. (more…)