http://money.cnn.com/2010/03/29/news/companies/American_Idol_sale/index.htm
NEW YORK (CNNMoney.com) -- CKX Inc. confirmed Monday that it is in talks that could lead to the sale of the company that owns the popular television show "American Idol."
In a brief statement, the New York-based company stressed that no deal is pending, adding that it will make no further comments regarding a potential deal, including a sale price, unless a final agreement is reached.
While the statement didn't specify who CKX is in talks with, One Equity Partners, the private equity branch of JPMorgan Chase (JPM, Fortune 500), is reportedly interested in buying the company.
The Wall Street Journal reported last week that One Equity could pay CKX shareholders about $6 a share under a potential deal. That would value the company at about $560 million.
One Equity Partners, which owns a stake in TV Guide, did not immediately respond to requests seeking comment.
In addition to the "American Idol" broadcast in the United States, CKX owns the rights to local adaptations of the show that air in more than 100 countries worldwide.
I think that it is interesting that they would sale a company that owns a very successful show like American Idol. Although there has been speculation that American Idol is running out of momentum especially after two of the most popular judges have left the show (Paula as we know is already gone and Simon is leaving after this season). Do you guys think the company is selling foreseeing a loss and if so what are the benefits of purchasing this company?
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