Sotheby’s and Christie’s are gigantic international auction houses, whose origins date back to the mid-18th century. The long and rich history of both houses is full of spectacular sales records, numerous scandals, and connections with royal families. Sotheby’s and Christie’s hold the leading position in terms of reputation and financial turnover, accounting for 87 percent of the global art market. Below we present the history of these two giants.
Sotheby’s
Sotheby’s is the oldest and largest international art auction company in the world, which was founded in 1744 by Samuel Baker, a London entrepreneur, publisher, and bookseller. In March 1744, Baker held the first auction under his own name, putting up for sale several hundred rare and valuable books from all branches of belles-lettres from the library of Sir John Stanley, the Earl of Derby, from which he earned 826 pounds of that time. For over a hundred years, Baker and his successors dealt with all the major libraries of the English aristocracy, sold at auctions. After the death of Napoleon, Baker managed to acquire and sell the books that the French emperor took with him into exile on the island of Saint Helena. Soon, the company expanded its activities to the sale of prints, coins, medals, and antiques, and in the interwar years Sotheby’s focused on the sale of paintings and decorative works of art.
In the mid-1950s, Sotheby’s, following artistic trends, opened a department for Impressionist and modern art and attracted both private buyers and dealers. The successful auction of the Weinberg Collection in 1957, which was viewed by Queen Elizabeth II herself, was overshadowed the following year by the groundbreaking sale of the Goldschmidt Collection, consisting of seven masterpieces of Impressionism.For the first time in history, participants were required to follow a dress code, and the exhibited Impressionist paintings could be viewed in the world’s first auction catalog printed in color.
Over the following decades, Sotheby’s permanently redefined the way art auctions are presented – and their potential – which became a manifestation of professionalism and proof of prestige.
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Among the most interesting works sold by the house are Andy Warhol’s “Orange Marilyn,” sold for $17,327,500 in 1998, Edvard Munch’s masterpiece “The Scream,” which in 2012 was sold for a then-record sum of $119,922,500, as well as the collections of Greta Garbo, Jacqueline Kennedy Onassis, the Duke and Duchess of Windsor, Gianni Versace, and David Bowie.
Currently, Sotheby’s has offices in 40 countries and sells items in over 70 categories, including artworks, retail items, diamonds, cars, and wines. The company’s annual global turnover now exceeds 4 billion dollars.
In 2019, as a result of the company’s acquisition, Sotheby’s changed from a public company to a private one. The auction house is now owned by the French-Israeli billionaire Patrick Drahi, an entrepreneur in the media and telecommunications industry.
Christie’s
Founded in 1766 by James Christie, the famous auction house also began in London. Unlike its main rival – Sotheby’s, James specialized primarily in the trade of artworks from the very beginning of its existence.
In 1778, Christie’s mediated the sale of the famous collection of Sir Henry Walpole to the Russian ruler, Empress Catherine II, and in 1786 Christie’s sold the library of the famous Dr. Samuel Johnson, the creator of the “Dictionary of the English Language.” The collection included insightful books in the fields of medicine, law, mathematics, and theology.
The revolutionary upheavals that took place in France at the end of the 17th century somewhat gave London the status of the world center for the trade in works of art. Christie’s took advantage of this moment, making milestone steps in the history of both itself and the entire industry over the subsequent decades. In 1824, the National Gallery was established in London, which opened its doors with collections partially purchased from the auction house. The New York MET museum also made its first connection with the London market through Christie’s, sending them its items for sale in 1958.
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In 2016, Christie’s celebrated its 250th anniversary and over the years broke countless auction records. This includes, in particular, the sale of the Rockefeller collection, which became the most significant charity auction in history, reaching 832.6 million dollars.
Christie’s can also boast of the sale of Marilyn Monroe’s dress (the actress wore it while performing the birthday serenade for President Kennedy), as well as the auction of the painting “Salvator Mundi,” which is attributed to Leonardo da Vinci. This painting became the most expensive work of art ever sold. In 2011, a record sale of diamonds was set by auctioning the private jewelry collection of Elizabeth Taylor, considered the most valuable in the world.
Christie’s also became a private company when in 1988 it was bought out by a holding group of the French billionaire, Francois Pinault. The group is called “Artemis” and owns collections including works of art, real estate, jewelry, fashion, and antiques.
Christie’s today has over 80 offices in 43 countries and conducts around 350 auctions each year divided into 80 categories, which include, among others: works of art, jewelry, gemstones, furniture, decorative objects, clothing, photographs, personal items, wine, and cars.
Competition and scandals
In the year 2000, an international scandal erupted when both auction houses were accused of colluding on a common pricing policy, concerning commission fees and other commercial terms in auction transactions, which in the USA is considered a crime.
As it turned out during the investigation, the multimillion-dollar frauds reached the heights of power in both companies. The management of Christie’s admitted guilt, which allowed the company to receive immunity and none of the representatives were convicted, but the auction house had to pay $250 million in compensation to its former clients. A fine was also imposed on Sotheby’s, whose two owners went to prison.
It is said that both auction houses are known for excellence in different fields. Sotheby’s specializes in American furniture and photography, while Christie’s excels in European furniture, books, and manuscripts. Both houses are also known for the sale of diamonds and fantastic jewelry collections. Each strives to offer the best items at the highest possible prices, competing intensely for the title of the world’s most prestigious auction house.
Sotheby’s was the first, in 2005, to present its online auction system, eventually transforming it into a leading sales model. Currently, the capabilities of the system are very extensive – it allows clients to create so-called lists of the most desired items, continuously updated with new things available at auctions.
Christie’s also created an online auction service – the Christie’s Live platform – from which it is possible to bid from anywhere on Earth.
Native jewelry art
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