Replies to post #175342 on InCapta Inc (INCT)

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Company buys 'Idol' maker, already owns Elvis estate

NEW YORK (DowJones/AP) — Sports Entertainment Enterprises (CKXE), which owns most of the Elvis Presley estate, said Friday it has agreed to acquire 19 Entertainment, the British company behind American Idol, for about $156 million in cash and stock.

Sports Entertainment, which is based in Las Vegas and does business as CKX, will pay an additional $36.9 million in either cash or stock following delivery of audited results for the year ending June 30.

Sports Entertainment is controlled by billionaire Robert Sillerman. It licenses the songs of Presley and conducts tours of the Graceland mansion.

The company said it entered into a long-term agreement with Simon Fuller, who founded 19 Entertainment in 1985, to serve as a director of the company.

19 Entertainment has recording contracts with several musicians, including former American Idol participants Kelly Clarkson, Ruben Studdard and Fantasia.

Sports Entertainment financed the acquisition with borrowings and through the exercise of $25 million of stock purchase warrants held by Sillerman and other members of management.