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Entertainment content owner CKx inked a definitive merger agreement and will be acquired by an affiliate of Apollo Global Management.CKx owns producer 19 Entertainment, which holds the proprietary rights to the “Idols” and “So You Think
April 6, 2018
CKx owns producer 19 Entertainment, which holds the proprietary rights to the “Idols” and “So You Think You Can Dance” television brands; the rights to the name image and likeness of Elvis Presley and the operations of Graceland; and the name, image and likeness of Muhammad Ali.
Under the terms of the agreement, CKx stockholders will receive $5.50 in cash for each share that they hold, representing an approximately 40 percent premium over CKx's average closing price over the past six months and an approximately 25 percent premium over the closing price on Monday.
Apollo has also obtained support agreements from two significant stockholders, Lisa Marie Presley’s The Promenade Trust, partner in Elvis Presley Enterprises, and Robert F.X. Sillerman, CKx’s largest stockholder.
The acquisition will be completed through a cash tender offer for shares of common stock, which 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. Upon completion of the transaction, CKx will become a private company, controlled by an affiliate of Apollo Global Management.
"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,” says Michael G. Ferrel, chairman and chief executive officer of CKx. “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."
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