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Private Equity Firm to Buy 'American Idol' Parent

The company that is parent of "American Idol" and owns the rights to the name, image and likeness of Elvis Presley and Muhammad Ali is being sold for about $511 million in cash.

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A private equity group led by Apollo Global Management said Tuesday it will pay $5.50 per share for CKx . That is a 24 percent premium to the stock's closing price Monday of $4.45.

The company had about 92.9 million shares outstanding as of March 31.

The board and CKx's largest shareholder support the deal. A cash tender offer is expected to start soon and expire in 20 days.

The news came as New York-based CKx says it earned $7.2 million in the first quarter despite a 20 percent drop in revenue as it cut expenses.

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