The afternoon deal: “American Idol” edition
CKX, which also owns the rights to the “So You Think You Can Dance” TV franchise and the Elvis Presley name, stopped short of saying who it’s holding discussions with and warned there is no assurance the sale will close.
The Wall Street Journal reported last week that One Equity Partners, JPMorgan and Co’s private-equity arm, is nearing a buyout deal to take the entertainment group private “for roughly $6 a share,” with CKX CEO Robert F.X. Sillerman set to retain a roughly 20.6 percent stake in the company.
More on this story from around the Web:
“American Idol”: The real worth? (Wall Street Journal)
“One issue for the company is that it is costly to keep the talent happy. The company, for example, recently paid Ryan Seacrest to $15 million to retain him for future projects and for the rights to market his name and image, according to analysts.”
The tanking value of the “American Idol” franchise (BloggingStocks)
“While American Idol is still a popular show, its ratings have been in decline. Last week USA Today reported that ‘The final rounds of American Idol opened Tuesday with 22.9 million viewers, down 10% from last year’s equivalent episode. Wednesday’s results show drew 20.5 million.’ Back in February, the series lost in the ratings for the first time in six years.”
CKX deal shouldn’t be Idolized (Wall Street Journal)
“A couple of years back, Mr. Sillerman and the creator of Idol failed in a bid to take the company private at more than double the current price and the reported private-equity bid.”
“American Idol” owner CKX confirms it’s in sale talks (Bloomberg BusinessWeek)
CKX CEO Robert F.X. Sillerman expressed his frustration over the company’s stock price earlier this month. “‘Without giving a specific timeframe, I’m frustrated at the public valuation, and I couldn’t tell you how much longer that I can sit by,’ Sillerman said on a March 16 earnings conference call. ‘I don’t know whether that’s an hour or whether that’s multiple years, but I can tell you that I am as frustrated or more frustrated than anybody.’”
(Photo: American Idol host and judges (L to R) Ryan Seacrest, Randy Jackson and Simon Cowell arrive to attend the “American Idol, The Idol Gives Back” show and fundraising event in Hollywood, California in this April 6, 2008 file photo. REUTERS/Hector Mata)