AAA Auctionata and Paddle8 bid to merge

Auctionata and Paddle8 bid to merge

Auctionata, a Germany-based online auction platform backed by media group Hearst, agreed on Thursday to merge with US-based peer Paddle8.

Founded in 2012, Auctionata operates a livestreaming auction platform that sells vintage luxury goods such as cars, jewellery, watches and wine from continental Europe.

Auctionata had raised $88m, $45m of which came from a March 2015 round featuring Hearst’s corporate venturing unit Hearst Ventures, as well as E.Ventures, MCI Management, Holtzbrinck Ventures, Bright Capital, Kreos Capital, Yuan Capital, Earlybird, Kite Ventures, Raffay Group, TA Ventures and REN Invest.

Paddle8, which was founded in 2010, operates mainly in the US and UK, specialising in contemporary art and design as well as celebrity merchandise, having auctioned off collectibles including Kurt Cobain’s credit card.

The company had secured $44m in funding from investors including Founder Collective, Mousse Partners, Skate Capital and members of the art world including Damien Hirst, David Zwirner and Jay Jopling.

The businesses claim the merged company will become one of the world’s top 10 auction houses outside China, with almost 800,000 registered users and sales of more than $150m.

Auctionata CEO Alexander Zacke will lead the group, which will concentrate on the sub-$500,000 part of the market, while the brand names will continue in their individual markets.

Zacke said: “Auctionata and Paddle8 combine complementary business models which will mutually benefit each other in their respective markets. Our ability to innovate at a faster pace and develop new technologies and services is a great opportunity to further increase growth.

“The reciprocal nature of our business, coupled with our shared desire to grow the culture of collecting in a transparent and efficient manner made this partnership a very easy decision.”

Leave a comment

Your email address will not be published. Required fields are marked *