American Idol owner accepts $1.3-b buyout
CKX, owner of the “American Idol” brand, agreed to a $1.3-billion buyout by chief executive officer Robert FX Sillerman and the show’s creator, Simon Fuller, sending the shares soaring.
By Agencies |
NEW YORK: CKX, owner of the “American Idol” brand, agreed to a $1.3-billion buyout by chief executive officer Robert FX Sillerman and the show’s creator, Simon Fuller, sending the shares soaring.
The $13.75 per-share bid also gives investors a stake in a company developing hotels and casinos based on celebrities including iconic singer Elvis Presley and boxing champion Muhammad Ali. Shares in CKX jumped as much as 44%.
FX Luxury Realty, a CKX affiliate, has property interests in Las Vegas and plans to develop themed attractions around the Presley and Ali names and images, which CKX owns. Investors will get one share in FX Luxury for each CKX share, along with the cash price, CKX said today in a statement. The arrangement may deter opposition to the offer.
“We have come to realise that there is a substantial opportunity to capitalise on the Elvis Presley and Muhammad Ali assets in real estate and location-based attractions,” Sillerman said in the statement. CKX bought half of FX Luxury Realty today for $100 million, the company said.
Bids to take private publicly traded companies including Clear Channel Communications have generated increasing resistance from investors seeking to retain a stake in the acquired company. Highfields Capital Management, owner of about 5% of Clear Channel, only accepted a $19.5-billion buyout of that company after being given a chance to remain an owner. Sillerman and Fuller’s offer for CKX provides a 45-day “go-shop” period during which independent directors can seek out competing bids. Sillerman, Fuller and other managers have agreed to vote their shares in favour of bids that the board finds more favorable, the company said in a regulatory filing.
Sillerman, 59, built a fortune buying and selling media companies such as SFX Broadcasting. His wealth is estimated at $975 million. He is CKX’s largest shareholder, with more than 33 million shares, a 34% stake. “American Idol”, aired on News Corp’s Fox broadcast network, is the most-watched US television show. The concept was created and imported from England by Fuller, 47, the founder and CEO of CKX unit 19 Entertainment.
Sillerman formed CKX in 2005 when another company he owned, Sports Enterprises, bought 19 Entertainment for $161.3 million. A year later, Sillerman acquired control of the likeness, name and image of Ali for $50 million.
In the 1990s, Sillerman started SFX Entertainment, which became the biggest US concert, theatre and sports promoter before it was sold in 2000 to Clear Channel for $4 billion.
Fuller, who started 19 Entertainment in 1985, created the UK singing contest “Pop Idol”, establishing the basic format for “American Idol” and similar shows worldwide.
The $13.75 per-share bid also gives investors a stake in a company developing hotels and casinos based on celebrities including iconic singer Elvis Presley and boxing champion Muhammad Ali. Shares in CKX jumped as much as 44%.
FX Luxury Realty, a CKX affiliate, has property interests in Las Vegas and plans to develop themed attractions around the Presley and Ali names and images, which CKX owns. Investors will get one share in FX Luxury for each CKX share, along with the cash price, CKX said today in a statement. The arrangement may deter opposition to the offer.
“We have come to realise that there is a substantial opportunity to capitalise on the Elvis Presley and Muhammad Ali assets in real estate and location-based attractions,” Sillerman said in the statement. CKX bought half of FX Luxury Realty today for $100 million, the company said.
Bids to take private publicly traded companies including Clear Channel Communications have generated increasing resistance from investors seeking to retain a stake in the acquired company. Highfields Capital Management, owner of about 5% of Clear Channel, only accepted a $19.5-billion buyout of that company after being given a chance to remain an owner. Sillerman and Fuller’s offer for CKX provides a 45-day “go-shop” period during which independent directors can seek out competing bids. Sillerman, Fuller and other managers have agreed to vote their shares in favour of bids that the board finds more favorable, the company said in a regulatory filing.
Sillerman, 59, built a fortune buying and selling media companies such as SFX Broadcasting. His wealth is estimated at $975 million. He is CKX’s largest shareholder, with more than 33 million shares, a 34% stake. “American Idol”, aired on News Corp’s Fox broadcast network, is the most-watched US television show. The concept was created and imported from England by Fuller, 47, the founder and CEO of CKX unit 19 Entertainment.
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Sillerman formed CKX in 2005 when another company he owned, Sports Enterprises, bought 19 Entertainment for $161.3 million. A year later, Sillerman acquired control of the likeness, name and image of Ali for $50 million.
In the 1990s, Sillerman started SFX Entertainment, which became the biggest US concert, theatre and sports promoter before it was sold in 2000 to Clear Channel for $4 billion.
Fuller, who started 19 Entertainment in 1985, created the UK singing contest “Pop Idol”, establishing the basic format for “American Idol” and similar shows worldwide.
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