Item 8.01 – Other Events

     As previously disclosed in a current report on Form 8-K, on June 17, 2008, Sotheby’s (the “Company”) issued $200,000,000 of 3.125% Convertible Senior Notes due 2013 (the “Convertible Notes”) and $150,000,000 of 7.75% Senior Notes due 2015 (the “Senior Notes” and together with the Convertible Notes, the “Notes”) to Banc of America Securities LLC, Goldman, Sachs & Co., Comerica Securities, Inc. and HSBC Securities (USA) Inc (collectively, the “Initial Purchasers”). The net proceeds from the sale of the Notes were approximately $340.2 million, after deducting the Initial Purchasers’ discounts.

     On July 18, 2008, the Company used a portion of the net proceeds from these Notes to redeem its 6.98% Senior Unsecured Notes that were due in February 2009. The total paid to redeem the 6.98% Senior Unsecured Notes was $105.7 million, which includes $102.5 million for the present value of the remaining principal and interest and $3.2 million for accrued and unpaid interest through the date of redemption.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.