New Owners for American Idol’s CKx

NEW YORK: CKx, the parent company of 19 Entertainment, is to be acquired by private-equity firm Apollo Global Management in a deal valued at about $510 million.

CKx stockholders will receive $5.50 in cash for each share that they hold—a 40 percent premium over CKx’s average closing price over the past six months and a 25 percent premium over the closing price yesterday. Consent for the deal has been given by two significant shareholders: Lisa Marie Presley’s The Promenade Trust—CKx’s partner in Elvis Presley Enterprises—and former CEO Robert F.X. Sillerman.

"We look forward to working with Apollo, a growth-oriented investor who has a successful history of investing in the media and entertainment sector and one that the Board and management team are confident will serve as a strong steward for the company’s brands going forward," said Michael G. Ferrel, chairman and CEO of CKx. “The transaction allows CKx stockholders to realize significant value from their investment in the company and the Board has determined that the transaction is advisable, fair and in the best interest of the company’s public stockholders.”

Aaron J. Stone, a senior partner of Apollo, added, “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.”

CKx owns the proprietary rights to American Idol and So You Think You Can Dance; rights to the name, image and likeness of Elvis Presley and Muhammad Ali; and the operations of Graceland.