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eBay buys auction house
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April 26, 1999: 9:01 a.m. ET
Art dealer Butterfield & Butterfield purchased for about $260M in stock
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NEW YORK (CNNfn) - eBay, the online auctioneer, sought to bring higher-quality merchandise to its users Monday by acquiring the Butterfield & Butterfield auction house for $260 million in stock.
Under terms of the deal, the number of shares to be issued will be determined by a formula based on eBay's average common stock price during a period prior to the closing of the transaction. eBay said the deal may result in the recognition of one-time charges in the quarter during which it's completed, expected to be the current one ending in June.
San Francisco-based Butterfield & Butterfield, a privately held company, specializes in authenticating, appraising and marketing art and fine collectibles including paintings, furniture and jewelry. The company had planned an initial public offering of its own, but eBay said that stock sale has been canceled as a result of the acquisition.
"This transaction will combine eBay's (EBAY) technology and large community of users with Butterfield's expertise in premium markets and extensive relationship with dealers," eBay President Meg Whitman said. "We will be able to bring fine and decorative art and collectibles online, allowing eBay members unprecedented access to many of the world's outstanding collections."
San Jose, Calif.-based eBay said Butterfield had been providing auctions online through a local company, but ended the arrangement three weeks ago in order to work with eBay.
eBay shares closed Friday at 200-1/8, up 28-1/8. 
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