One Equity Partners is nearing a deal to acquire CKX Inc. (CKX), the publicly traded company behind brands like American Idol and So You Think You Can Dance, according to the Wall Street Journal.

CKX's current CEO would retain his stake in the company. The company was close to a deal to sell for $13.75 per share back in 2007, but the credit crunch nixed it. Now, the stock trades right around $6 per share, suggesting that the value of the American Idol franchise has tanked in value over the past couple years.

Continue reading The Tanking Value of the American Idol Franchise

The Tanking Value of the American Idol Franchise originally appeared on BloggingStocks on Mon, 29 Mar 2010 13:30:00 EST. Please see our terms for use of feeds.

Continue reading Seacrest is in as "Idol" producer pays $45 million for its host

Seacrest is in as "Idol" producer pays $45 million for its host originally appeared on BloggingStocks on Mon, 13 Jul 2009 15:00:00 EST. Please see our terms for use of feeds.

In trying to be all things financial to all people, Citigroup Inc. (NYSE: C) lost track of what it was, a successful bank. Now, the word success is a term that can only be used in a mocking fashion as corporate leadership allowed the company to be marginalized, with the stock sinking 97% in a two year period (chart below).

The popular television show American Idol, is in its eighth season, but before they even narrow down the list of hopefuls to the 12 finalists Citigroup has already picked out its idol -- that would be Uncle Sam!

Continue reading Citigroup's American Idol is Uncle Sam

Citigroup's American Idol is Uncle Sam originally appeared on BloggingStocks on Thu, 26 Feb 2009 11:00:00 EST. Please see our terms for use of feeds.

Continue reading Will 'American Idol' and 'Lost' burn investors?

Will 'American Idol' and 'Lost' burn investors? originally appeared on BloggingStocks on Thu, 15 Jan 2009 18:00:00 EST. Please see our terms for use of feeds.

Continue reading Has American Idol jumped the shark?

Has American Idol jumped the shark? originally appeared on BloggingStocks on Tue, 13 Jan 2009 18:20:00 EST. Please see our terms for use of feeds.

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.

Continue reading Would Simon Cowell's departure from American Idol hurt CKX?

Would Simon Cowell's departure from American Idol hurt CKX? originally appeared on BloggingStocks on Fri, 19 Dec 2008 13:30:00 EST. Please see our terms for use of feeds.

David Cook's Billboard success nearly matches The Beatles originally appeared on BloggingStocks on Thu, 29 May 2008 13:53:00 EST. Please see our terms for use of feeds.

Continue reading My plan to save 'American Idol'

My plan to save 'American Idol' originally appeared on BloggingStocks on Tue, 13 May 2008 16:56:00 EST. Please see our terms for use of feeds.

News Corp.'s (NWS) FOX broadcasts American Idol -- which gets 24 million viewers a show -- but is the judging fair and balanced? The New York Times suggests maybe not so much. That's because a major slip-up by judge Paula Abdul this week revealed that the judges watch rehearsals two hours before the live performances and their comments -- which may influence the public vote on the contestants -- are not spontaneous reactions to the live performances.

This week performers sang two songs but the judges were supposed to withhold their remarks until after the second performance. On Tuesday, Abdul watched one of the contestants, Jason Castro, give one live performance but when asked to offer a comment on it by Ryan Seacrest, she gave her thoughts on two performances -- the second of which she had seen in the rehearsal. When Abdul started talking about that second performance, I thought that she had a few too many before the show.

However, the explanation in the Times makes it clear that she was flustered because Seacrest had initially said that the judges would not comment until the performers had completed both of their songs. However, executive producer Nigel Lythgoe changed things up at the last minute, demanding that Seacrest get the judges to give a quick assessment of the performances after their first song.

Continue reading Is American Idol judging fair and balanced?

Is American Idol judging fair and balanced? originally appeared on BloggingStocks on Thu, 01 May 2008 10:33:00 EST. Please see our terms for use of feeds.

With news that American Idol contestant David Hernandez (I personally think Kady is the next idol) will remain in the singing contest despite reports that he used to be a nude performer at a male strip club in Phoenix, the question is whether the show itself should get rid of him, like they have done in the past, as well as how should investors treat publicly traded companies like Ricks Cabaret Int'l Inc. (NASDAQ: RICK)?

American Idol executive producer Ken Warwick told TVGuide.com he was unaware of the singer's past before the news report but that it would have made no difference. "We're never judgmental about what people do to earn a living. They've got to put food in people's mouths," he said. Historically, the way the show deals with these kind of controversies is a mixed bag. Last year, Antonella Barba appeared in provocative online photos and she remained. But Frenchie Davis, a Season 2 singer, was dropped after reports that as a 19-year-old she appeared on a website designed to appeal to men interested in underage girls.

There is an obvious difference. Neither Hernandez nor Barba ever did anything illegal. Though many viewers believe that what they have done is morally reprehensible, it is still not a crime, and why shouldn't they have an opportunity to try and change their lives.

Continue reading Investing in American Idol through strip clubs

Investing in American Idol through strip clubs originally appeared on BloggingStocks on Wed, 05 Mar 2008 16:06:00 EST. Please see our terms for use of feeds.

According to The Hollywood Reporter, CBS (NYSE: CBS) has greenlit a reality program that should turn out to be pretty funny. The show is titled Splitsville, and its premise centers on divorcing couples vying for assets via sundry competitions.

You know, just when you think they've covered every conceivable angle for a reality show, they come up with one that makes you say, "I should have thought of that!" Of course -- find divorcing people who really hate each other and then see how far they are willing to go to fight for the stuff generated during their union. I have no idea what the format the show is, but I can tell you that I dearly hope the producers utilize a few tricks from Fear Factor. Imagine allowing a dozen large tarantulas to crawl over your body so you can take the family toaster!

Continue reading CBS to mine broken marriages for ratings (and dividends)

CBS to mine broken marriages for ratings (and dividends) originally appeared on BloggingStocks on Fri, 22 Feb 2008 10:14:00 EST. Please see our terms for use of feeds.

That groaning sound you heard last night was the late Elvis Presley voicing his disapproval of Noriega's dreadful performance of "Jailhouse Rock" on yesterday's telecast. Even stranger was the fact that Noriega picked the song, which debuted in 1957, for 60's night. Vote for the Worst urges its readers to "vote as much as you can for the fierce and fabulous Danny Noriega. Simon [Cowell] obviously hated him the most, which is why we love him the most."

Noriega, like Malakar, erodes fans' confidence in Idol, which should alarm Fox's parent News Corp (NYSE: NWS). There are some other weird developments that will tax viewers' patience even further. Idol contestant Carly Smithson was signed to MCA records when judge Randy Jackson worked there. Allowing contestants to participate who have had record deals dilutes the spirit of the contest.

Continue reading Will Fox kill the golden American Idol goose?

Will Fox kill the golden American Idol goose? originally appeared on BloggingStocks on Wed, 20 Feb 2008 15:35:00 EST. Please see our terms for use of feeds.

Apple (NASDAQ: AAPL) and American Idol -- it's got a ring to it, doesn't it? According to The Hollywood Reporter, Apple's iTunes has passed the audition and become the official online supplier of content from the show. Fans will now be able to purchase music performances and videos for 99 cents and $1.99, respectively.

Such a pairing seems eminently logical. Combining the phenomenon of American Idol, currently making waves yet again on News Corp.'s (NYSE: NWS) Fox network, with the musical juggernaut of iTunes will be mutually beneficial for both parties. Idol is, without a doubt, a show that attracts the iPod generation -- the youthful demographic that walks around with earbuds blocking out the world with music popularized by MTV, as well as the program itself. As for iTunes, the partnership validates once again the incredible dominance of the brand and its effect on the distribution of music. The potential for marketing synergy here is obvious.

Continue reading iTunes and 'Idol': It's marketing genius, dawg!

iTunes and 'Idol': It's marketing genius, dawg! originally appeared on BloggingStocks on Tue, 19 Feb 2008 10:10:00 EST. Please see our terms for use of feeds.

According to the Associated Press, mighty mouse Disney (NYSE: DIS) wants in on the American Idol action. I don't blame the company one bit -- even though I'm not a huge Idol fan, and thought that the fad might wear out by now, there's no question that hooking up with the equity tied to this incredible broadcast brand is a good strategic move.

Disney's Hollywood Studios theme park plans on hatching an attraction that will allow guests the opportunity to audition in a park stage. There probably will be several shows during the day, and the guests who perform in them will receive some sort of evaluation, although I hope there won't be any evil Simon-like judges handing out the critiques; in fact, the Associated Press article indicates that the judges might actually be members selected from the actual show audience.

I honestly see this as a great value-added to the Disney theme-park experience. And the cool thing is that Disney gets exposure to the success of American Idol even though its arch competitor, News Corp. (NYSE: NWS), obviously derives the most benefit by programming the show as a part of Fox Broadcast's portfolio. It's also a great way to make up for past mistakes -- ABC apparently could have had Idol on its schedule if it had wanted to, according to this past article from the Motley Fool. No matter, Disney can now make amends by thrilling its tourists with the fantasy of Hollywood and its tinsel fame. And, in case you were wondering, Disney didn't need to get Fox's permission to do this; all it had to do was negotiate with 19 Entertainment and FreemantleMedia, the entities behind Idol. Kind of a neat trick, huh?

Disney guests to become 'American Idols' originally appeared on BloggingStocks on Fri, 08 Feb 2008 11:25:00 EST. Please see our terms for use of feeds.

Continue reading What 'American Idol' can teach you about solar stocks

What 'American Idol' can teach you about solar stocks originally appeared on BloggingStocks on Tue, 08 Jan 2008 10:20:00 EST. Please see our terms for use of feeds.

Continue reading Former 'American Idol' Taylor Hicks loses record contract

Former 'American Idol' Taylor Hicks loses record contract originally appeared on BloggingStocks on Mon, 07 Jan 2008 18:03:00 EST. Please see our terms for use of feeds.

In the summer of 2002, four little words -- "A Moment Like This" -- catapulted Kelly Clarkson from small-town Texas karaoke-singing waitress to the first American Idol superstar. Three years later, her second album Breakaway had five hit singles, including "Since U Been Gone," one of the top pop hits of the year. A pair of Grammy awards, multiple platinum designations, and an endorsement deal with Ford Motor Co. (NYSE: F) followed, and "Miss Independent" was on top of the world, albeit still under some creative control of 19 Entertainment and the Idol family.

In 2007, a matured Clarkson was dealing with a breakup in her personal life and a desire for a darker sound. She wrote or co-wrote every track on her third album effort, My December, which was released in late June to mixed critical reviews and sales that paled in comparison to Breakaway and her debut, Thankful. In the six months following its release, fewer than a million copies had been purchased in the U.S. Perhaps the edgier tone to the record alienated her teeny-bopper fans.

Kelly parted ways with her management company in June, with a source telling tabloid Us Weekly that there was disagreement "over the songs and the direction" of My December. Low ticket sales then prompted the cancellation of her summer arena tour.

But Kelly's still young and vibrant, with a good head on her shoulders and a great voice for pop music. She's embarking upon a tour of smaller venues earlier next year and already at work on her fourth album. I'm confident she'll be back on top again ... there will be another "moment like this" for the American Idol groundbreaker.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

Be sure to check out other Money Losers of 2007.

Money Losers of 2007: Kelly Clarkson's edgier sound leads to ebbing sales originally appeared on BloggingStocks on Fri, 21 Dec 2007 11:05:00 EST. Please see our terms for use of feeds.

Dick Clark's New Year's Rockin' Eve

Dick Clark to 'Rock' New Year's Eve once again originally appeared on BloggingStocks on Tue, 13 Nov 2007 18:31:00 EST. Please see our terms for use of feeds.

According to today's U.K. Guardian, Google (NASDAQ: GOOG) has been meeting with American Idol guru Simon Fuller about partnering on an internet project that he says is a "big idea on a global scale." While no details were disclosed, Fuller compared the impact of the project to that of iTunes on the music industry.

My first thought was that Google was going into original programming, for which Fuller has been a cash machine. However, a couple of shows, even if very successful, do not the foundations of entertainment shake. Google has also crapped out on a pay-per-view models, and I'd be surprised if that resurfaced. With its purchase of YouTube, though, it owns the mother of all footprints in online video.

As a WAG, perhaps the plan might be more along these lines: A producer creates a show, partners with Google to market it for internet delivery. The show is delivered with advertising content via the Google/YouTube network. For each viewing, advertisers pay a fixed rate, and Google divvies up the ad revenue with the producer. In essence, Google replaces the television network's role, using its ubiquitousness to market content to those it identifies as the most likely to view.

Any plans coming from the Google/Simon confab need to be taken seriously. They are, after all, two American Idols.

Google and American Idol's Simon Fuller talking big originally appeared on BloggingStocks on Tue, 13 Nov 2007 14:40:00 EST. Please see our terms for use of feeds.

Seacrest, In ... to host the Emmys originally appeared on BloggingStocks on Tue, 21 Aug 2007 11:30:00 EST. Please see our terms for use of feeds.