CKX Scuttles Plan To Go Private
November 4, 2008 at 5:11 AM (PT)
CKX INC., run by Chairman/CEO ROBERT F.X. SILLERMAN, which licenses the rights to images of ELVIS PRESLEY and other celebrities, said that a $1.33 billion plan to go private has fallen through because of "extraordinary" economic conditions," reports THE WALL STREET JOURNAL. Formed in 2004, CKX has built a rights portfolio related to the images and creative output of public figures including MUHAMMAD ALI and DAVID and VICTORIA BECKHAM.
As a result of its 2005 acquisition of LONDON-based 19 ENTERTAINMENT LTD., CKX also owns the "AMERICAN IDOL" TV and music franchise and its international counterparts.
Under the now-scuttled plan, announced in June 2007, a group of managers led by SILLERMAN and 19 ENTERTAINMENT CEO SIMON FULLER would have paid $1.33 billion, or $13.75 a share, for CKX.
The company on MONDAY cited "national and global economic conditions that made it impossible to consummate the transaction." CKX shares settled at $4.18 in 4p NASDAQ composite trading, down 26 cents, or 5.9%.