19X Lowers CKX Offer
Media licenser CKX Inc., which holds the rights to the name and likeness of figures such as Elvis Presley and Muhammad Ali as well as "American Idol," said Monday its prospective buyer has lowered its offer, citing the falling value of media companies.
The privately held bidder, 19X Inc., is offering $12 per CKX share.
Last June, CKX agreed to be bought by 19X for $13.75 per share. The companies agreed to revise the agreement in September to reduce the amount of cash 19X would need to close the deal.
19X is led by CKX Chairman and Chief Executive Robert F.X. Sillerman and "American Idol" creator Simon Fuller.
"We remain committed to completing the acquisition of CKX at a price that we believe reflects the continued outstanding performance of the company and which provides a substantial premium above the current price to the company’s stockholders, but which also takes into account the seismic shift in the buyout world since the time we originally entered into this transaction," Sillerman said in a statement.
CKX said the latest bid is being reviewed by a special board committee that recommended the original deal.
CKX shares shot up when the deal was first announced nearly a year ago, but have fallen since as the likelihood of a successful transaction grew less clear.
The company’s shares jumped 60 cents, or 6.2 percent, to $10.30 in after-hours trading Monday. The stock earlier rose 11 cents to close at $9.70