French-Israeli businessman rescued by UAE investment
The owner of Israeli broadcaster HOT and the i24 news network has just partnered with the United Arab Emirates to preserve Sotheby's Auction House ownership. The government investment fund, Abu Dhabi Developmental Holding Company (ADQ) has agreed to invest $1 billion in the deal with Israeli-French billionaire Patrick Drahi, according to Ynet News.
Drahi acquired the auction house in 2019 for $3.7 billion but has been facing financial difficulties, with his fortune falling from about $16 billion dollars to just over a third, about $6.3 billion, according to Forbes. The reported stated that Qatar pulled out of dealings with the Israeli businessman due to the Israeli-Hamas conflict, leaving Drahi facing billions of growing debts.
With ADQ stepping in as a minority partner in the investment, Drahi retains majority ownership in the deal.
Despite a decline in Sotheby’s financial performance, the company’s board of directors issued a statement last month alongside a £66 million dividend (over $84 million) paid to Drahi. The statement affirmed, "The directors remain confident in Sotheby's long-term success and continue to invest selectively in global initiatives."
Qatar has been hosting the political offices of the Hamas terrorist organization since 2012 and operating as a negotiator with the Hamas leadership since the outbreak of the war on last October. Qatar has been funding the Gaza Strip to the tune of millions of dollars in aid and chose to withdraw from publicly dealing with the Israeli media magnate in light of the current situation.
ADQ Deputy CEO Hamad Al-Hammadi commented on the UAE decision to invest in the company, stating "Our investment underscores our firm belief in the enduring value of Sotheby’s brand, market-leading platform, and the ability of its management to execute on their growth agenda."
Charles Stewart, the CEO of Sotheby's, also expressed satisfaction with the new partnership with ADQ, stating that it “will enable us to accelerate our strategic initiatives, expand our commitment to excellence in the art and luxury markets, and continue to innovate to better serve our clients around the world."
If money talks, this deal highlights shifting alliances and illustrates the evolving nature of Israel’s relationships with various Arab nations.
Jo Elizabeth has a great interest in politics and cultural developments, studying Social Policy for her first degree and gaining a Masters in Jewish Philosophy from Haifa University, but she loves to write about the Bible and its primary subject, the God of Israel. As a writer, Jo spends her time between the UK and Jerusalem, Israel.
