Beowolff Capital, a company run by British investor Andrew Evan Wolff, offers companies operating similarly named art market websites and news media a voluntary acquisition of Artnet AG. Artnet. After more than two decades of public inclusion on the Frankfurt Stock Exchange, the company may make the company private.
As of today, Artnet AG has provided €11.25 per share to the remaining shareholders, a 97% premium to the undisturbed share price on March 3.
This proposal follows as Artnet continues to cope with increasing financial pressure. According to German commercial newspapers Handelsblatt– Steeper gap than the previous year. Revenue fell to €23.4 million, and the company’s liquidity was almost half cut during the same period, while cash in just one million euros.
Beowolff’s bid – through its investment vehicle Scur-Alpha 1849 GmbH (which will soon be renamed Leonardo Art Holdings GmbH) – has been supported from 65% of Artnet shareholders, including Weng Fine Art Ag, which has previously been proposed in a possible sale.
In Tuesday’s announcement, Artnet’s management and oversight committees expressed support for the move and the company will benefit from a “more stable, more private environment” and long-term shareholder structure and liberate from public market scrutiny. The offer is not dependent on external financing.
The deal also indicates Beowolff’s growing ambitions in the arts and technology sector. Earlier this year, the company gained control of the online art market Artsy. “The digital art market is already mature and can accelerate innovation,” Wolf said, touting the company’s plan to create a data-driven “symbiotic ecosystem” powered by artificial intelligence.
But behind enthusiasm is a business. According to Art Market News Wall power supplyIn the first half of 2024, Artnet’s revenue fell 7%, with all major business scopes down, including subscriptions, once a growth engine. The company’s media division sold just $162,000 in revenue before overhead, making it the weakest performance to date. Meanwhile, Artnet revealed nearly 1 million euros in additional loans this year alone.
Despite Artnet’s brand awareness and 67 million annual users, it is still struggling to capitalize on the strengths of its early promoters. Investors have watched for years of stagnation and internal friction, which is clearly in the founding Neuendorf family and Weng Fine Art Ag (both between major shareholders).
Beowolff expressed confidence in Artnet, praising the company’s “strong business proposition.”
Debris expected to be conducted after the acceptance period of the offer will mitigate Artnet’s public reporting requirements and can mark the beginning of a wider merger across the digital art platform.
