Saturday, May 29, 2010
(Reuters) - CKX Inc, which owns the rights to the popular "American Idol" television show, said it has received a takeover offer from an investor group led by Simon Fuller, a creator of the popular singing contest.
Entertainment|Deals|Inflows OutflowsLate Thursday, The Wall Street Journal reported that Fuller and former Barclays Capital dealmaker Roger Jenkins were planning a $600 million bid for the company after amassing $1 billion in a fund for strategic acquisitions.In a statement, CKX said its board is evaluating the proposal, and no further details were available.Shares of the company rose as much as 33 percent Friday on Nasdaq, before paring gains to trade up $1 at $5.30. A deal at that price would value the company at about $493 million.CKX owns rights to the Idols television brand, including the "American Idol" series in the United States and local adaptations. "Idol" is the most-watched show in the U.S. and has spin-offs in several countries.CKX also rights to the names, images and likenesses of Elvis Presley and Muhammad Ali, according to its website.The news comes after CKX's founder Robert Sillerman resigned as chief executive and chairman on May 7.Back in March, Siller!
man, the company's largest shareholder with a 21 percent stake, was in the late stages of another buyout transaction led by JP Morgan's private-equity branch, One Equity Partners, for $558 million.Craig-Hallum Capital analyst Mark Argento said it is unlikely the company will get another offer. "If somebody did want to buy them they would have probably already approached the company by now."(Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Gopakumar Warrier and Saumyadeb Chakrabarty and by Bob Tourtellotte in Los Angeles)
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