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Apollo Global to acquire American Idol owner Ckx for $509m

BBR Staff Writer Published 11 May 2011

Apollo Global Management, an alternative asset manager, has agreed to acquire CKx, an entertainment firm that owns television singing competition 'American Idol', for approximately $509m.

Under the terms of the agreement, CKx stockholders will receive $5.50 in cash for each share that they hold, representing an approximately 40% premium over CKx's average closing price over the past six months and an approximately 25% premium over the closing price on 9 May 2011.

In connection with merger agreement, Apollo also obtained support agreements 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 FX Sillerman, the company's largest stockholder.

Upon completion of the transaction, CKx will become a private company, controlled by an affiliate of Apollo Global Management.

Apollo senior partner Aaron Stone said CKx owns a portfolio of irreplaceable assets that present a strong foundation on which to build an exciting future. The firm look forward to working with Mike Ferrel and the rest of the CKx management team.

The transaction is subject to approval.