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Facebook's IPO Debacle, Day 3: Un-Friended and Dis-Liked on Wall…It's just weeks away -- a potentially big change for the television show that transfixes America. But how many people would watch it if the show's superstar decided to take a hike? That's not just a troubling question for viewers of the show but for investors in the stock of the company that licenses it around the world. What show am I talking about? American Idol. Which star is thinking of leaving? Wait for it -- Simon Cowell. And what stock could take a beating if he leaves? CKX Inc (NASDAQ: CKXE).
Simon Cowell is thinking of leaving American Idol. According to MSNBC, Simon said "I'll make a decision about (whether to stay with the show) next year." Why would Simon leave? He claims it's not personality conflicts but the workload and his belief that the show could keep those demands going "for another 10 years." But if Simon leaves, would the show be as popular? Could the producers find someone else to be the harsh voice of reality?
That's an important question for investors in CKX. Way back in June 2007, CKX accepted a bid to go private in a $1.3 billion LBO led by its founder Robert Sillerman. But on November 4. 2008, that deal fell apart due to tightening credit conditions. This put Sillerman's 19X, which was leading the buyout, on the hook for a $37.5 million termination fee, which it said it would pay for with about 3.3 million shares of CKX common stock then valued at $11.08 per share and $500,000 in cash. The company said it will pay the fee in full within 30 days of the deal's termination date.
Since CKX was trading at $4.39, it's not clear to me why 19X said it had shares worth $11.08. And if Simon Cowell leaves the show, those shares will be worth a lot less.
Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter
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Reader Comments (Page 2 of 2)
12-21-2008 @ 1:25AM
SHANE said...
The show is beyond tired. All the faux best friends after 1 week and hugging and crying when someone gets voted off is disgusting. I hope it will just go away like most of the "winners" of the show seem to do.
12-21-2008 @ 2:44AM
All American said...
Who cares, I hate that guy, freakin' pompous ass. Watched it once and as soon as he opened his mouth, never watched it again.
12-21-2008 @ 9:21AM
conniehaydari said...
simon is the show.his remarks are accurate.
12-21-2008 @ 9:51AM
craig said...
simon is american idol. if he leaves, the show wont be the same. i hope this is just some sick prank and he stays on the show.
12-21-2008 @ 12:41PM
Sam said...
Simon is the only one who 95% of the time tells it like it is.... and AI has become a popularity show, not a talent show. I think it pretty much has run it course one way or the other and adding another ditzy female isn't going to do anything but waste more time and cause more arguing among the judges. If you want to get rid of someone, don't add another ditz and get rid of RYAN.
12-21-2008 @ 1:50PM
MARIA R said...
HEY IF WILLIAM HUNG MADE IT THERE IS SOMTHING REALLY WRONG BUT WHO KNOWS SOME PEOPLE LOVE A LOOSER AND TO ME SIMON IS A REAL UP FRONT AND HONEST GUY LIKE RANDY WHO TELLS IT LIKE IT IS GET RID OF PAULA SHE ALREADY HAD SOMEONE DIE IN HER DRIVEWAY SO IF SHE GOES THE SHOW WILL LIVE
12-25-2008 @ 11:31AM
MrsM said...
He is HORRIBLE, nasty and cruel. Yes, some people are not that good, but he is awful.
go back to UK and leave us alone. You're a mean one mr. cow-l.
He is the reason I stopped watching. Isn't there enough nasty without importing it?
1-12-2009 @ 11:33PM
Louise said...
Thank you for letting us post about our favorite singer. Without this site, it would be really difficult to share the latest news about them.
FREE SONG FROM AMERICAN IDOL'S MELINDA DOOLITTLE! GO TO www.melindadoolittle.com and get it NOW - FREE! New album released on February 3, 2009! Don't miss it!
1-13-2009 @ 7:27PM
Louise said...
Thank you for letting us post about our favorite singer. Without this site, it would be really difficult to share the latest news about them.
FREE SONG FROM AMERICAN IDOL'S MELINDA DOOLITTLE! GO TO www.melindadoolittle.com and get it NOW - FREE! New album released on February 3, 2009! Don't miss it!