On Monday, Sotheby's, premier auction house for fine art, antiques, books and other collectable memorabilia named Tad Smith as its new chief executive.

Ted is the head of the sports and entertainment group Madison Square Gardens (MSG). He will replace William Ruprecht, who led the company for almost 15 years prior to his resignation in November.

Mr. Ruprecht started as a typist in the rug department in 1980. Now, Tad would replace Ruprecht who fills the roles of chairman and chief executive.

However, Sotheby's said it had separated the roles of chairman and chief executive. Its board has elected lead independent director Domenico De Sole to take over as chairman. Smith will also join the company's board of directors.

The appointment of Tad Smith has also ended a long battle between Mr. Ruprecht and his supporters and the hedge fund manager Dan Loeb.

Mr. Loed campaigned for changes at the auction house after taking a stake in the company in October 2013. He controls assets worth approximately $15bn through his hedge fund Third Point.

As soon as he announced his ownership of 9.3% of the equity, he began calling for an end to Mr. Ruprecht's tenure. According to him, poor spending control, weak growth compared to arch rival Christie's were holding Sotheby's back.

Since Mr. Smith has no experience in the auction industry and has run MSG for just over a year, he was considered to be an apt chief executive for the company.

Domenico de Sole, new Sotheby's chairman said, "Mr. Smith is the ideal CEO for the company. He is a proven leader and value creator with CEO experience, strategic vision, brand-building expertise and a track record of driving revenue and profit growth".