The digital art world is on the eve of a momentous change. On May 27, Anglo-American investment firm Beowolff Capital Management Ltd officially announced avoluntary public offering to acquire a 65 percent stake in Artnet AG, one of the longest-running and most influential platforms for the online art market. The deal also includes the delisting (removal of a listed stock) of the company from the Frankfurt Stock Exchange, a circumstance that marks the end of an era and the beginning of a new strategic phase for the global digital art ecosystem.
Beowolff Capital will finance the Offering entirely with equity capital and will not require external financing or debt. Beowolff Capital has already secured a 65 percent stake in the entire share capital of Artnet through irrevocable commitments and share purchase agreements, including with Weng Fine Art AG. In addition, Beowolff Capital and Artnet are convinced that Artnet would be best positioned in a privately owned environment with a stable and long-term shareholder. This would enable it to accelerate its business strategy, moving away from the volatility and costs of a stock market listing (this is the reason for the delisting, according to a statement), and short-term earnings pressures. The delisting will also end Artnet’s financial reporting and capital market disclosure requirements. Prior to delisting, Artnet shareholders will have the opportunity to crystallize value by contributing their shares to the Offering.
Beowolff Capital, founded by former Goldman Sachs partner Andrew Evan Wolff, has launched the offer through SCUR-Alpha 1849 GmbH, which will be renamed Leonardo Art Holdings GmbH, in homage to the idea of merging art and innovation. The offer is set at 11.25 euros per share, which represents a significant premium over previous listings. The entire transaction is valued at around 65 million euros.
One of the key elements that enabled Beowolff to quickly achieve a dominant position within the shareholding structure was the purchase of a 29.99 percent stake in Artnet, previously held by German entrepreneur Rüdiger Weng and his company Weng Fine Art AG. The sale of this stake earned Weng approximately 15.2 million euros.
Beowolff Capital’s project is not limited to a passive investment operation. The company also recently acquired a majority stake in Artsy, another leading platform for the online art market, known for its innovative approach, user-friendly design and an international audience of collectors and galleries, so much so that it is now considered the leading marketplace for art online. The stated goal is to integrate Artnet and Artsy into a single advanced digital infrastructure, based on artificial intelligence technologies, advanced analytical tools and interoperability between data, content and transactions.
According to Andrew Evan Wolff, CEO and founder of Beowolff Capital, “The digital art market is poised for accelerated innovation. Through our growing portfolio of control investments in market-leading companies, we are building a symbiotic ecosystem based on shared artificial intelligence tools. Our platform will offer next-generation products, better serve all market participants, and make art more accessible to all.”
Jan Petzel, Chief Investment Officer of the fund, also reiterated the potential of the synergy between the two companies, “Artnet represents an exciting opportunity that aligns perfectly with our goal of building an interconnected art market. Artnet’s brand strength and global reach are significant, and we intend to further develop and enhance its value proposition.”
Jacob Pabst, CEO of Artnet, says, “This transaction comes at a crucial time for Artnet’s innovation and product development. I am deeply proud of the artnet team, whose dedication and hard work have been instrumental in driving our global expansion. It is incredibly gratifying to see their efforts recognized, as this will finally allow us to accelerate the initiatives they have worked so hard for. Beowolff Capital’s longstanding support for Artnet gives me confidence in their commitment and optimism for our partnership. We believe the proposed transaction offers our clients new opportunities to strengthen their business and deepen their patronage in the arts.”
Founded in 1989 in Berlin by Hans Neuendorf, Artnet was a pioneer in digitizing the art market. Its price database, or price database, a database with more than 18 million auction results, has been a revolutionary tool for valuations and price transparency. Today, Artnet boasts about 67 million annual unique users, with offerings ranging from online auctions and editorial publication (Artnet News) to services for galleries and auction houses. Currently, most of Artnet’s operations are based in New York at the headquarters of Artnet Worldwide Corporation, a wholly owned subsidiary of Artnet Ag. In turn, Artnet Worldwide Corp. owns a London-based subsidiary, Artnet UK Ltd.
Beowolff’s public offering, which has received a positive reception from both the Management Board and the Supervisory Board of Artnet, involves, as anticipated, the company’s withdrawal from the Frankfurt Stock Exchange. The decision is motivated by a desire to increase strategic flexibility and reduce the costs associated with a public listing, at a time when the digital art market requires rapid adaptability and development capabilities.
With this acquisition, Beowolff Capital aims to become the leading integrated player in the digital art market, leveraging the complementarity between Artnet and Artsy. While Artnet is known for its database and long-standing reputation in the secondary market, Artsy has established itself for its modern user experience, strong curatorial component, and young, international community. Artsy currently has over 3.5 million registered users and 3.3 million monthly visits, with a network of partner galleries spread around the world.
The strategic plan includes the creation of shared artificial intelligence-based tools that will be able to help collectors discover new works, artists monitor the progress of their careers, and galleries manage sales and relationships more effectively.
The deal between Beowolff Capital and Artnet, and the future integration with Artsy, marks a turning point in the contemporary art landscape. While many platforms struggle to adapt to market changes and new technologies, Beowolff’s approach focuses on consolidation, innovation, and long-term strategic vision. Thus, this merger could represent a new paradigm for the intermediation and enjoyment of art in the digital age.
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| Beowolff Capital acquires Artnet and aims to integrate it with Artsy to revolutionize the art market |
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