Apollo’s New Buy Worth $509M: American Idol Show Owner
According to the reports released by Bloomberg, Apollo Global Management will soon be acquiring the ownership of the American Idol television show, CKX, by paying $509 million in cash for the acquisition.
The reports have confirmed that the New York-based private equity firm will be paying $5.50 a share, which if calculated is a 40% premium being given to New York-based CKX’s closing price over the past six months and a 24% gain over yesterday’s close of $4.45.
“Idol” has been known to charge highest ad rates of any U.S. TV series. The firm is still winning back viewers in its 10th season thereby snapping four years of losses, after it hired Steven Tyler and Jennifer Lopez as judges.
“This a bet that ‘Idol’s,’ success can continue” Hal Vogel, an independent media analyst in New York, said in an interview. “These assets are showing a much longer life. I expected more deterioration over time.”
Also it was released in a statement that the agreement has been supported by the Former Chairman and Chief Executive Officer Robert F.X. Sillerman, who left last year to pursue a bid and owns almost 21% stock in the company.
“We look forward to working with Apollo,” Michael Ferrel, chairman and CEO of CKX, said in a statement. The firm “will serve as a strong steward for the company’s brands going forward.”
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