« | Home | »

American Idol: Parent Company To Be Bought Out

May 11, 2011 01:00 PM by Lisa Princ

Just as we are getting down to the semi final round on American Idol on FOX, it has been announced that their parent company, CKx is about to be bought out. What exactly does this mean for our favorite singing competition? Keep reading for all the details!

It was recently announced that American Idol’s parent company, CKx is going to be bought out an affiliate of Apollo Global Management. The official press release states CKx, Inc. (NASDAQ: CKXE), an owner of premium entertainment content, today announced that it has entered into a definitive merger agreement to be acquired by an affiliate of Apollo Global Management (“Apollo”), a leading global alternative asset manager.

Under the terms of the agreement, CKx stockholders will receive $5.50 in cash for each share that they hold, representing an approximately 40% premium over CKx’s average closing price over the past six months and an approximately 25% premium over the closing price on Monday, May 9, 2011. Goldman Sachs Bank USA provided a debt financing commitment in connection with the transaction, which is subject to customary conditions.

The Board of Directors of CKx has approved the merger agreement and has resolved to recommend that CKx stockholders approve the merger. In connection with the definitive merger agreement reached with the Company, Apollo has also obtained support agreements from two significant stockholders, The Promenade Trust, the sole beneficiary of which is Lisa Marie Presley and which is the Company’s partner in Elvis Presley Enterprises, and Robert F.X. Sillerman, the Company’s largest stockholder.

Michael G. Ferrel, Chairman and Chief Executive Officer of CKx, said: “We look forward to working with Apollo, a growth-oriented investor who has a successful history of investing in the media and entertainment sector and one that the Board and management team are confident will serve as a strong steward for the Company’s brands going forward. The transaction allows CKx stockholders to realize significant value from their investment in the Company and the Board has determined that the transaction is advisable, fair and in the best interest of the Company’s public stockholders.”

Aaron J. Stone, a senior partner of Apollo said: “CKx owns a portfolio of irreplaceable assets that present a strong foundation on which to build an exciting future. We look forward to working with Mike Ferrel and the rest of the CKx management team.”

The tender offer would be followed by a merger in which each share of common stock not acquired in the offer will be converted into the right to receive $5.50. In certain circumstances, the parties have agreed to complete the transaction through a one-step merger after receipt of stockholder approval. Upon completion of the transaction, CKx will become a private company, controlled by an affiliate of Apollo Global Management.

CKx who owns both Fox hits American Idol and So You Think You Can Dance has not announced nor we think they will make any changes to the popular shows, but as always we will report anything new that we find out for you! Comment and share your thoughts with us – we’d love to hear from you. Then be sure to tune in next week to see the top four performances!

Want more? Follow our tweets on Twitter and “like” us on Facebook! For other great American Idol news, please feel free to check out SirLinksALot: American Idol and then come and discuss the show on our American Idol message boards.

For more breaking news about celebrities and entertainment visit our sister site SheKnows.com!

Photo Credit: FOX news

Topics: American Idol, FOX Reality TV Shows |

« | Home | »

1 Comment »

One Response to “American Idol: Parent Company To Be Bought Out”

  1. Danielle Says:
    May 18th, 2011 at 12:26 pm

    As a devoted viewer of AI for years, I am boycotting the show beginning today, 5/18/11. This show is so poorly produced and the voting procedure is a travesty, voters allowed as many votes as they want. There should be a designated number of votes allowed per voter. If this is how they get their ratings then it is not a competition, it is a popularity contest. I took note of how they surrounded the stage with screaming teeny boppers. Even at one time they had young children I am so dissapointed in AI and they have lost our household now and in the future. They need to come on the air tonight, make an apology and explain the error made last week. I forsee their ratings dropping beginning this week. I predicted their demise when Simon left the show. At least he had constructive criticism. James Durbin will be in the headlines as a successful singer after the three amigos ride off in the sunset.

Comments



SheKnows Entertainment