Creator of Idol launches take-over bid for entertainment company CKx
31 May 2010
CKx, Inc., the owner and developer of entertainment content and owner of rights to the popular "American Idol" television show, said late last week that it has received a take-over offer from a group of investors led by Simon Fuller, the British creator of the Idol franchise.
The New York City-based CKx, whose initials 'C' and 'K' stand for 'Content is King' said that its board is evaluating the proposal, as well as other potential strategic alternatives for the company.
It also said that it has retained Gleacher & Company as financial advisor and Wachtell, Lipton, Rosen & Katz as legal advisor to assist in this evaluation.
Although the company did not disclose the bid price, The Wall Street Journal had reported on 27 May, citing people familiar with the matter that Simon Fuller and former Barclays Capital banker Roger Jenkins are planning to submit a bid of $600 million for the entertainment company.
CKx owns the rights to the name, image and likeness of Elvis Presley, the operations of Graceland (Elvis Presley's home in Memphis) and proprietary rights to the 'Idols' television brand, including the American Idol series in the US and local adaptations of the Idols television show format which, collectively, air in over 100 countries globally.
It also holds an 80 per cent interest in the name, image, likeness and all other rights of publicity of Muhammad Ali and the rights to all existing Ali license agreements.
