CKX confirms buyout talks after report of potential deal with 1 Equity Partners; shares jump
By APMonday, March 29, 2010
CKX confirms buyout talks; shares jump
NEW YORK — CKX Inc., the media company behind “American Idol,” is confirming that it is in talks to sell the company.
The company did not give a price or say who the prospective buyer is.
It also cautioned Monday that a deal still might not happen and said it won’t be releasing more details until it has a firm agreement.
The disclosure comes after The Wall Street Journal reported on its Web site Friday that CKX is close to selling itself to the private equity firm One Equity Partners for about $6 per share. That would be a 9 percent premium to the stock’s close of $5.48 on Thursday.
The stock closed Monday up 9 cents, or 1.5 percent, to $6.05, after hitting $6.20 earlier in the session.
In addition to “American Idol,” CKX also owns and develops other entertainment content, including licensing the name and likeness of Elvis Presley and Muhammad Ali.
