NEW YORK (AP) -- The company that is parent of "American Idol" and owns the rights to the name, image and likeness of Elvis Presley and Muhammad Ali is being sold for about $511 million in cash.
A private equity group led by Apollo Global Management said Tuesday it will pay $5.50 per share for CKx Inc. That is a 24 percent premium to the stock's closing price Monday of $4.45.
The company had about 92.9 million shares outstanding as of March 31.
The board and CKx's largest shareholder support the deal. A cash tender offer is expected to start soon and expire in 20 days.
The news came as New York-based CKx says it earned $7.2 million in the first quarter despite a 20 percent drop in revenue as it cut expenses.
(Copyright 2011 by The Associated Press. All Rights Reserved.)
To comment, the following rules must be followed:
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Links require admin approval before posting.
Questions may be sent to firstname.lastname@example.org. Please provide detailed information.