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Filed under: Deals, Television, Private equity, CKX Inc (CKXE), Entrepreneurs
The gleam of the American Idol brand is brighter than ever after CNNMoney.com reported that billionaire and media magnate Robert F.X. Sillerman made a successful bid to take the AI franchise owner, CKX Inc (NASDAQ: CKXE) private. CKX announced Friday it accepted the offer from a group led by its current CEO, Sillerman, for $1.3 billion. Since Sillerman and other board members already owned 46% of outstanding capital stock, sale approval was a slam dunk.
The offer of $13.75 per share carried a 29% premium. However, according to the Wall Street Journal's MarketBeat, this fell well short of the $20-25 value investors placed on the stock.
Other CKX holdings include the rights to Elvis Presley, his music and his Graceland estate, as well as the rights to the name, image, and likeness of Muhammad Ali.
The company is attempting to grow its Presley line by enlisting the help of Cirque du Soleil in creating Presley-themed shows. It already has a deal with MGM Mirage to stage a permanent, live Presley show on the Strip in Las Vegas beginning in 2009. CKX also operates the Heartbreak Hotel, near Graceland, which might be a good place for the stockholders who feel the sale price was low to commiserate.
The company also plans to extend its Idol franchise worldwide. Since Simon (who needs a last name?) is contracted to the company, as well as holding a seat on the board of directors, we can safely assume his involvement won't be affected by the transition.
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