Robert F.X. Sillerman, known for his massive consolidation efforts in the radio and concert promotion industries, has reached a definitive agreement to acquire an 85% stake in Elvis Presley Enterprise
Robert F.X. Sillerman, known for his massive consolidation efforts in the radio and concert promotion industries, has reached a definitive agreement to acquire an 85% stake in Elvis Presley Enterprises, which controls the commercial use of Presley's name, image and likeness.
The deal includes the operation of Graceland and the surrounding properties in Memphis, as well as revenue derived from Elvis' music, films and television specials.
In exchange for total consideration of approximately $100 million, Lisa Marie Presley will contribute 85% of the outstanding equity interests of the assets comprising her father's estate. She will retain a 15% interest in Elvis Presley Enterprises, which will operate under Sillerman's newly formed media and entertainment company, CKX Inc.
The deal is structured so the title to Graceland and most of Presley's personal effects remain with Lisa Marie.
The Elvis businesses had total revenue of $44.9 million for 2003 and $37.9 million for the nine months ended Sept. 30, 2004. Net operating income before depreciation and amortization for those periods was $12 million and $9.4 million, respectively.
Sillerman says CKX will "partner with some of the most important and influential artists and creators of content in the entertainment world." He adds, "It is an honor and a privilege to kick this off with the King."
Sillerman was the founder, a major shareholder and executive chairman of SFX Entertainment from its inception in 1997 through its $2.5 billion rollup of concert promoters, until its sale to Clear Channel Communications in August 2000 for more than $4 billion.
Prior to that, Sillerman was a founder, major shareholder and executive chairman of SFX Broadcasting, Inc., an owner and operator of radio stations, from its inception in 1992 through its sale in 1998 to an affiliate of buyout firm Hicks, Muse, Tate & Furst.
Sillerman is also a founder and the controlling member of MJX Asset Management LLC, a company engaged in the management of, and investment in, collateralized debt obligation funds. MJX currently has approximately $1.5 billion under management.