Irving Azoff may join Allen Shapiro in bid for CKX

Music mogul Irving Azoff may join one of the groups kicking the tires of CKX Inc., the parent company of "American Idol" producer 19 Entertainment.

Azoff, the chairman of Live Nation Entertainment, is considering backing the potential bid of $550 million being put together by Allen Shapiro, president and chief executive of Mosaic Media Group, and One Equity Partners, a private-equity arm of JP Morgan Chase, confirmed people close to the situation. The news of Azoff's emergence as a potential player in the CKX sweepstakes was first reported by the New York Post.

If Azoff does throw some money Shapiro's way, it won't be the $200 million that the New York Post suggested. A person familiar with Azoff's thinking indicated that any investment would be much smaller than that and added that right now the talks are very preliminary.

Clearly though, Shapiro and One Equity Partners are anticipating a heated battle for CKX and looking for reinforcements. Last week, a group led by "American Idol" and 19 Entertainment founder Simon Fuller and former Barclays banker Roger Jenkins submitted an offer for CKX. Although CKX declined to state the amount, people close to Fuller said it was for $600 million. 

Another potential player is CKX founder Robert F.X. Sillerman, who resigned as chairman and chief executive of the company last month and said he might make an offer as well. Sillerman already owns 20% of CKX, so even if he doesn't make his own offer, he could end up having a big role in how all this plays out.

Besides "American Idol," CKX also produces Fox's "So You Think You Can Dance," owns a management business and a majority stake in Elvis Presley's Graceland mansion as well as an 80% interest in licensing rights to the name and image of Muhammad Ali.

-- Joe Flint

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 What is Simon Fuller's obsession with the number 19?

Fuller, the "American Idol" producer who cut his ties to Robert F.X. Sillerman's CKX Inc. earlier this week to go his own way, has named his new company XIX Entertainment Ltd., according to documents detailing the split that were filed at the Securities and Exchange Commission late this afternoon. Of course, his old company was 19 Entertainment, producer of Fox's "American Idol" and "So You Think You Can Dance," which he sold to CKX five years ago for $200 million.

As part of Fuller's deal to leave CKX, he also gave up his CKX board seat and signed a consulting agreement with the company. The move came after Sillerman, who is chief executive of CKX, squashed speculation that Fuller was making a power play for the top job there.

CKX can take as much as a 30% stake in XIX, according to a Securities and Exchange Commission filing. Fuller, meanwhile, gets almost $3 million in signing bonuses and consulting fees. Furthermore, he gets a $5-million advance against 10% of the net profit in "American Idol" and "So You Think You Can Dance" for this year. Fuller will continue to get 10% of the net profit for the two shows as long as he remains a consultant to CKX.

Fuller also will exit with more than $1.6 million in compensation and confidentiality payments.

-- Joe Flint

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"American Idol" creator Simon Fuller is leaving 19 Entertainment to start his own company.

Fuller, who had been looking to take over 19 Entertainment parent CKX Inc., has instead signed a consulting deal to the company that will keep him producing 19 Entertainment's "American Idol" and "So You Think You Can Dance." CKX, which is headed by media magnate Robert F.X. Sillerman, will have a right to invest in Fuller's as-yet-unnamed new company. An announcement of the new arrangement was made early today.

Fuller will also exit CKX's board of directors as well, people close to the situation said.

"As an entrepreneur I feel I am about to enter my prime years and starting a new entertainment company at this moment fills me with great excitement," Fuller said in a statement.

Sillerman said he was "delighted that going forward Simon will be free to focus his creative energy on developing new ideas and projects and that CKX has the opportunity to invest in his new business."

Fuller's departure from 19 Entertainment ends a power struggle with Sillerman that had been heating up over the last several months. Fuller had been waging a not-too-subtle campaign to unseat Sillerman, and Fuller's camp had been predicting he would be running CKX in the coming year.

In a recent interview with the Los Angeles Times, Sillerman dismissed the idea that Fuller would get his desk.

"Simon is much more interested in creating things than he is in meeting with analysts and handling the chores of a public company chief executive," Sillerman said. A corporate job, he added, would be a "huge waste of his talent."

Fuller's 19 Entertainment is the biggest unit of CKX. For the third quarter that ended Sept. 30, 2009, 19 Entertainment had revenues of $71.4 million, accounting for 82% of parent CKX's total revenue. The bulk of CKX's $11-million operating income for the quarter was also mostly from CKX. The company has not reported fourth-quarter results yet.

Besides 19 Entertainment, CKX also has a majority stake in Elvis Presley's Graceland mansion and an 80% interest in licensing rights to the name and image of Muhammad Ali. However, it is 19 Entertainment that accounts for most of the revenue at the company.

-- Joe Flint

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Robert F.X. Sillerman's on Simon Cowell's and Simon Fuller's agendas

Robert F.X. Sillerman, the media magnate whose CKX Inc. is the parent company of "American Idol" producer 19 Entertainment, isn't worried about Simon Cowell leaving the show and dismisses speculation that Simon Fuller, who created "Idol" and is on the CKX board, wants to unseat him.

"Simon Cowell is a spectacular talent; having said that, I think 'American Idol' is much bigger than any one individual," Sillerman told Company Town.

Cowell, who is wrapping up a deal with Fox to bring his British hit "The X Factor" to the network in fall  2011, a move that would likely mean he'd give up full-time judging duties on "American Idol" after the season that starts this week wraps in May. (For more on Cowell's next move, see our story here.)

Sillerman said that perhaps new judge Ellen DeGeneres will ultimately become the next focal point of the show. " 'American Idol,' " he added, "will outlive you and me."

While there has been a ton of attention focused on the likely exit of Simon Cowell, "Idol" creator Simon Fuller may be getting ready to make a move of his own with Sillerman in his sights.

Fuller is eyeballing the top job at CKX,  people close to the British entertainment mogul said. His camp is predicting that he will take over the company from Sillerman this year, according to an article in the Britain's Telegraph newspaper last month.

If that is the case, they're not clueing in Sillerman, who dismisses talk that Fuller wants his desk.

"Simon is much more interested in creating things than he is in meeting with analysts and handling the chores of a public company chief executive," Sillerman said, adding that a corporate job would be a "huge waste of his talent."

Sillerman waves off rumors of Fuller wanting to become chief executive of CKX as reported in the British press. "There is nothing to what was reported ... I can't foresee any circumstance that Simon and I will not be working together for years and years to come."

We'll see about that.

-- Joe Flint

Photo: Robert F.X. Sillerman. Credit: Mitsu Yasukawa/Los Angeles Times.