American Idol prodco sold in $509m deal

CKX, the parent of American Idol producer 19 Entertainment, is being bought out in a deal that values the company at US$509m

The deal will give US financial group Apollo Global Management ownership of a business that, aside from 19, owns rights to the likeness and names of Elvis Presley and Muhammad Ali.

CKX has been the subject of takeover speculation over the past year. In October, the group backed out of talks with “interested parties” including the firm’s former CEO Robert Sillerman.

There was also speculation that a group led by American Idol creator Simon Fuller – who sold 19 and Idol rights to CKX in 2005 – lodged a takeover bid in June last year. Fuller and and Sillerman got together in 2007 to make an unsuccessful US$1.3bn bid for CKX.

As well as Idol, which 19 coproduces together with FremantleMedia and Fuller retains an exec producer credit on via his venture XIX, the firm also owns the rights to Fox format So You Think You Can Dance.

CKX had been due to release first-quarter results but today cancelled its announcement after receiving backing from board members for the Apollo bid.

CKX’s two main shareholders are Sillerman and The Promenade Trust, whose sole beneficiary is Lisa-Marie Presley, the company’s partner in Elvis Presley Enterprises.

The parties will receive US$5.50 per share, a 25% premium on Monday’s closing price of US$4.45, but some way down on its US$29 high of 2005.

Aaron Stone, a senior partner at Apollo, said CKX had “a strong foundation on which to build an exciting future.” Michael Ferrel, chairman and CEO of CKX, added that he was confident Apollo would “serve as a strong steward for the company’s brands going forward.”