Simon Fuller, the founder of 19 Entertainment and creator of the “Idol” TV series, is planning a $600 million bid for CKX Inc., according to a person with knowledge of the situation. CKX jumped the most in three years.
Fuller, working with former Barclays Plc executive Roger Jenkins, plans to submit a letter to CKX, the owner of “American Idol,” detailing their offer as soon as today, said the person, who declined to be identified because the matter is private. The Wall Street Journal reported the bid yesterday.
Julian Henry, a spokesman for Fuller, and Ed Tagliaferri, a spokesman for New York-based CKX, declined to comment.
Fuller left CKX in January and has continued to offer creative services in exchange for $5 million a year and 10 percent of the profit from TV shows “Idol,” “So You Think You Can Dance,” and “If I Can Dream.” Fuller and former CKX Chief Executive Officer Robert F.X. Sillerman previously tried to take CKX private in 2007, dropping the $12-a-share bid in 2008.
CKX rose 79 cents, or 18 percent, to $5.11 at 11:45 a.m. in Nasdaq Stock Market trading, giving the company a market value of about $475.6 million. The stock jumped as much as 33 percent earlier today.
Fuller sold 19 Entertainment to Sillerman five years ago, part of the string of deals that created CKX. Sillerman, CKX’s largest shareholder, resigned as chairman and CEO May 7 to pursue a possible takeover of the company, which also owns the rights to Elvis Presley’s name and image.
Jenkins didn’t immediately respond to a message left at Dublin, Ireland-based Elkstone Capital, the corporate finance and advisory firm he created last year and where he is a principal. He had been the head of principal investments and chairman of the Middle Eastern investment banking unit at Barclays and left last year.