News createt: 10-05-2011 02:00:00
Apollo buys out CKX
The owner of “American Idol” and “So You Think You Can Dance” agreed on Tuesday to be acquired by Apollo Global Management for more than $509 million.
The deal comes after the entertainment company, CKX, had been wooed by a number of private equity firms last year. In October, CKX said it had broken off buyout talks.
Under the terms of the deal, CKX shareholders will receive $5.50 in cash for each share, 24 percent above CKX’s closing stock price on Monday and 40 percent above its average closing price in the last six months,
CKX also owns rights to Elvis Presley’s name and image and Graceland’s operations.
In reaching its deal, Apollo says it has also obtained agreements from two significant stockholders: CKX’s partner in Elvis Presley Enterprises, The Promenade Trust, whose sole beneficiary is Lisa Marie Presley; and Robert F.X. Sillerman, the company’s largest stockholder.
Aaron J. Stone, a senior partner of Apollo, said in a statement: “CKX owns a portfolio of irreplaceable assets that present a strong foundation on which to build an exciting future. We look forward to working with Mike Ferrel and the rest of the CKX management team.”
Source: N Y Times