CKX Agrees To Apollo Sale
After years on and off the shopping block, “American Idol” parent CKX has agreed to sell itself off to private equity firm Apollo Global Management for a reported $509 million.
Under the terms of the deal, stockholders would receive $5.50 in cash per share. The company announced the sale would represent a 40 percent premium over average closing prices during the past six months. CKX stock was up more than 20 percent on the news.
This isn’t the first time Apollo Management has expressed interest in CKX, which also owns a majority of Elvis Presley Enterprises. Apollo was rumored to be in talks to acquire the company last fall for a reported $550 million. However, CKX’s board eventually called the whole thing off, explaining it hadn’t received “any proposals that it felt were in the best interests of the shareholders.”
It appears the board may have changed its tune after CKX revenues slid $54.6 million in 2010 and OIBDA dropped $32.5 million to $35 million during the same period.
In a statement, CKX CEO Michael Ferrel said the company looks forward to working with Apollo as “the transaction allows CKX stockholders to realize significant value from their investment in the company.
“The board has determined that the transaction is advisable, fair and in the best interest of the company’s public stockholders,” he said.