CKX Takes Sweetened Offer

CKX Inc. has agreed to a revised offer to be taken private by a company led by chairman and CEO Robert F.X. Sillerman and "American Idol" guru Simon Fuller.

The initial offer made by 19X to acquire the company for $13.75 per share was amended to give shareholders all of the shares of common stock of FX Real Estate and Entertainment, Inc. CKX also agreed to distribute half its interest in FX Real Estate, which owns about 18 acres of prime Las Vegas Strip property.

CKX owns and develops entertainment content, including licensing the name and image of Elvis Presley and Muhammad Ali, as well as owning the majority of Elvis Presley Enterprises. It also has the rights to the "American Idol" franchise and its overseas equivalents in more than 100 countries.

Sillerman said that the revised agreement allows 19X to modestly reduce the amount of cash needed to close the transaction while potentially raising the total value received by CKX shareholders.

In addition to transfer of shares, the revised agreement includes the previously-offered $13.75 per CKX share, minus a percentage of the incremental increase in value now being received. The cash consideration will be reduced by 7.5 percent of the average trading price of the additional shares of FX Real Estate being distributed to CKX stockholders during a future trading period.

CKX stockholders will also receive shares from a dividend declared in June, and two shares of FX Real Estate for over 10 shares of CKX owned as of a future record date.