Investor from Britain Proposes Buying Artnet in Face of Financial Difficulties
British investment firm Beowolff Capital, led by CEO Andrew Evan Wolff, has proposed a voluntary takeover of Artnet AG, the operator of the art market platform and news outlet, Artnet. The move could see the company go private after more than two decades of being publicly listed on the Frankfurt Stock Exchange.
As of today, Artnet AG is offering shareholders €11.25 per share in cash, a 97 percent premium over the undisturbed share price on March 3. The takeover offer comes as Artnet grapples with financial pressure, reporting a €1.9 million loss in 2023 and a 40 percent drop in liquidity compared to the previous year.
Beowolff Capital's investment vehicle, SCUR-Alpha 1849 GmbH (soon to be renamed Leonardo Art Holdings GmbH), already has backing from 65 percent of Artnet's shareholders, including Weng Fine Art AG. Artnet's management and supervisory boards have expressed support for the move, stating that the company would benefit from a more stable, private environment and a long-term shareholder structure. The offer is not contingent on external financing.
The proposed deal marks Beowolff Capital's growing ambition in the art-tech sector, following their acquisition of a controlling interest in Artsy, another major online art marketplace. The firm plans to create a data-driven "symbiotic ecosystem" powered by artificial intelligence, aiming to accelerate innovation in the digital art market.
However, behind the enthusiasm lies a business under strain. According to art market newsletter Wall Power, Artnet's revenue declined by 7 percent in the first half of 2024, with drops across all major business lines. The company's media division posted minimal earnings, making it the weakest performer. Meanwhile, Artnet disclosed additional loans of nearly €1 million this year alone.
Despite its brand recognition and 67 million annual users, Artnet has struggled to capitalize on its early mover advantage, with investors watching years of stagnation and internal friction between major shareholders.
If the takeover is accepted, Artnet would be relieved of its public reporting requirements, potentially marking the beginning of a broader consolidation across digital art platforms. The delisting is expected to take place following the offer's acceptance period.
- The proposed takeover of Artnet AG by Beowolff Capital could lead to a shift in Artnet's focus, as the company might explore opportunities in digital art within the planned "symbiotic ecosystem" powered by artificial intelligence.
- The art market landscape could witness significant changes if Artnet, having 67 million annual users and a strong brand recognition, goes private, potentially leading to consolidation among digital art platforms.
- Despite the premium offer for Artnet's shares, the art-tech sector investment firm Beowolff Capital finds the art market's finances an area of concern, as Artnet reported a loss in 2023 and a drop in liquidity, with revenue declining by 7 percent in the first half of 2024.
