A Bloomberg article investigates the lack of transparency in online auctions. The impetus for the report is a recent Paddle8 online auction, which featured 20 works of money-themed art, including a piece by Andy Warhol. After the auction was over and  65 percent of the lots were left unsold, Paddle8 pulled the estimates and bids from the website, opening up the possibility to put the artworks into another auction with no record of their failure to sell. This opacity has become common as more websites and auction houses engage in online auctions, a possible indication that these progressive methods are less than successful. (more…)

Online auction site Paddle8 has moved to acquire a 3% share in art sales database and auction site Artnet.  The stake previously belonged to Redline Capital Management, which attempted a takeover of Artnet last year. “We see a lot of strength in Artnet, and feel that the two businesses are complementary,” says Paddle8 co-founder, Aditya Julka.  “Paddle8 will benefit from Artnet’s price database and listings business, contributing to a winning formula in leading the online auction space. This is not a takeover but rather a move towards collaboration in the future.”  (more…)