American
Idol Sellout
03-20-05
.
(antiMUSIC) The man behind the "American Idol"
franchise has sold out. Simon Fuller, founder of 19 Entertainment, the
company that spawned "Pop Idol" and the global spinoffs including "American
Idol" has agreed to sell his company to entertainment mogul Robert F.X.
Sillerman and his company Sports Entertainment Enterprises (D.B.A. CKX,
Inc.).
Sillerman said on Friday that he has made
a $167 million deal with Fuller for the purchase of 19 Entertainment. Fuller
and his creative team will reportedly remain involved with 19 Entertainment
after the sale is concluded.
The deal includes cash and stock. Fuller
will reportedly receive $124.4 million in cash plus 1.87 million shares
of CKX stock ($43 million at trading value on Friday). An additional $36.9
million in cash and/or stock is on the table is 19 Entertainment reaches
financial targets for it's fiscal year ending in June.
Sillerman is no stranger to big entertainment.
He was the founder of SFX Broadcasting and SFX Entertainment. He sold off
his radio arm SFX Broadcasting in 1997 for $2.1 billion and merged his
concert promotion company SFX Entertainment with Clear Channel in a $4.4
billion deal in 2000.
Sillerman made headlines in December when
he purchased 85 percent of Elvis Presley Enterprises from the King's daughter,
Lisa Marie Presley.
CKX will not only acquire the global "Idol"
franchise with the purchase of 19 Entertainment but will also obtain lucrative
recording and management contracts in the deal.
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