'American Idol' and Billboard: James Durbin, Haley Reinhart Become 55th and 56th Finalists on Charts
'American Idol' and Billboard: James Durbin, Haley Reinhart Become 55th and 56th Finalists on Charts

CKx Inc., owner of American Idol and So You Think You Can Dance producer 19 Entertainment, said Tuesday it has agreed to be acquired by an affiliate of financial firm Apollo Global Management.

The deal values the company at around $509 million when multiplying the acquisition price with the number of outstanding company shares listed by Bloomberg.

In a statement, the companies said the deal will provide "additional resources and expertise to support growth of iconic brands."

Aaron Stone, a senior partner at Apollo, said: "CKx owns a portfolio of irreplaceable assets that present a strong foundation on which to build an exciting future."

CKx had in recent years repeatedly looked at a possible sale, but never reached an agreement.

The company also owns the rights to the likeness and names of Elvis Presley and Muhammad Ali.

Under the terms of the deal, CKx shareholders 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 obtained support from two significant stockholders, The Promenade Trust, the sole beneficiary of which is Lisa Marie Presley and which is the Company's partner in Elvis Presley Enterprises, and Robert F.X. Sillerman, the Company's largest shareholder.

Chairman and CEO Michael Ferrel said: "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. 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."