Pays $100 Million for Elvis Presley Estate
who founded and later sold radio operator SFX Broadcasting and
concert promoter SFX Entertainment, will acquire the stake in
Elvis Presley Enterprises from Presley's daughter, Lisa Marie
Elvis Presley estate is getting all shook up.
Robert F.X. Sillerman said on Thursday he agreed to
buy 85 percent of Presley's estate, including rights
to the singer's name and the management of his famed
Graceland mansion, in a deal worth $100 million.
called Elvis, famed as the "King of Rock 'n' Roll" the "most
significant icon in American pop culture."
well as running Graceland, Presley's home in Memphis, Tennessee,
Sillerman will own his name and likeness, the rights to his
photographs and revenue from his music, TV shows and films
such as "Jailhouse Rock."
title to Graceland and its surrounding property, including
most of Presley's personal effects, will remain with Lisa
visitor complex and "Heartbreak Hotel" across the street will
be sold. Presley, who died at Graceland in 1977, starred in
31 films and has sold over a billion records. More than 600,000
people visit Graceland each year.
Presley Enterprises generated $45 million in revenue in 2003
and $38 million in the first three quarters of this year.
Sillerman said in a statement he would pay $53 million in
cash, assume $25 million of Elvis Presley Enterprises debt
and pay the balance in shares.
Marie Presley said she had sought a partner for several years
to help expand Elvis Presley Enterprises and hoped the deal
would preserve her father's legacy.
greatest responsibility to my father is to preserve and protect
his legacy, and this is an exciting new structure that opens
up an incredible array of opportunities," she said.
Presley, Lisa Marie's mother and Presley's former wife, will
remain executive consultant to the business.
media release on sale of EPE
F.X. Sillerman And EPE Announce Partnership
is a press release from EPE. December 16, 2004
F.X. Sillerman and his new media and entertainment company,
which will be named CKX, Inc., have entered into a definitive
agreement to acquire a majority interest in the assets comprising
the estate of Elvis Presley.
new partnership will conduct all business activities concerning
EPE, Graceland and tour operations, however the transaction
was structured so that the title to Graceland and its 13.6-acre
grounds in Memphis, TN, and most of Elvis’s personal effects
remain with Lisa Marie Presley.
new partnership includes all trademark rights to the name,
likeness and image of Elvis Presley and all EPE-owned intellectual
property, including its collection of photographs, archival
documents and footage, and EPE’s successful music publishing
catalog, as well as the Graceland visitor center complex and
Heartbreak Hotel across the street from the mansion and all
other EPE real estate investments.
a related transaction, Mr. Sillerman announced that he expects,
through an affiliated entity, to acquire approximately 94
percent of the common equity of Sports Entertainment Enterprises,
Inc. [OTC BB:SPEA.OB], an inactive publicly traded company,
through which the business of CKX will be conducted. Please
see Mr. Sillerman’s and SPEA’s releases for further information
on this transaction.
the past few years I’ve been looking for someone to join forces
with to expand the many facets of EPE, to take it to new levels
internationally, and to make it an even greater force in the
entertainment industry,” said Lisa Marie Presley, singer/songwriter
and sole heir to the Elvis Presley Estate. “I feel confidant
that Bob Sillerman and his team are the right people to do
this with. My greatest responsibility to my father is to preserve
and protect his legacy, and this is an exciting new structure
that opens up an incredible array of opportunities with a
major infusion of new investment capital to do just that,”
continued Presley. “It’s the ideal partnership in that I retain
Graceland and my father’s personal effects, yet joining forces
with Bob Sillerman will give us the opportunity to grow even
further the intellectual and entertainment properties.”
on the transaction, Mr. Sillerman said, “I am extremely excited
about our new venture, which we believe will bring unique
concepts to different aspects of the utilization of entertainment
content and will challenge the current models of distribution
and consumption of content. I am fully committed to the success
of CKX and there is no better way to launch our new company
than by assuming the opportunity and responsibility, together
with the Presley family and the current management of Elvis
Presley Enterprises, of continuing and expanding the heritage
of Elvis Presley. I believe Elvis to be the single most significant
icon in American pop culture.”
staffing or personnel changes are anticipated within the EPE
organization. Priscilla Presley remains as an executive consultant,
Jack Soden remains as CEO and Gary Hovey remains Executive
Vice President and head of the Los Angeles office. All of
EPE’s management team and staff will remain in place and Graceland
tour operations will continue with business as usual.
was created in 1980 by Priscilla Presley on behalf of the
Elvis Presley estate. Its business extends far beyond the
Graceland operation. It includes worldwide licensing of Elvis-related
products and ventures, the development of Elvis-related music,
film, video, television and stage productions, the ongoing
development of EPE’s Internet presence, the management of
significant music publishing assets, the Heartbreak Hotel
in Memphis and more.
Sillerman was the founder, a major shareholder and served
as Executive Chairman of SFX Entertainment from its inception
in 1997 until its sale to Clear Channel Communications in
August 2000. SFX Entertainment was the largest presenter,
promoter and producer of live events in the world. Prior to
that, Mr. Sillerman was a founder, major shareholder and served
as Executive Chairman of SFX Broadcasting, a major owner and
operator of radio stations, from its inception in 1992 through
its sale in 1998 to an affiliate of buyout firm Hicks, Muse,
Tate & Furst.
of what great interest this news is to Elvis fans worldwide,
they anticipate many e-mail messages with inquiries and comments.
EPE will not be able to answer all those messages individually.
However, they will be posting more information here in the
newssection on their site as it becomes available to share
with you and they will be constructing a special Frequently
Asked Questions section to respond to the collected inquiries
and comments. Please send any messages to our general company
e-mail address firstname.lastname@example.org. Your message will be acknowledged
with a form response and then added to the file EPE will use
as a reference for constructing the FAQ and the continuing
news postings about this great new development for Elvis Presley
Enterprises, Inc. and the world of Elvis at large. Thank you
the Billboard Radio Monitor
move was funded through a complicated transaction in which
Sillerman's RFX acquired a 94% controlling interest in Sports
Entertainment Enterprises for $3.43 million.
exchange for total consideration of approximately $100 million,
Lisa Marie Presley will contribute 85% of the outstanding
equity interests of the assets comprising her father's estate.
She will retain a 15% interest in the two Presley entities,
which will operate as 85%-controlled subsidiaries of Sillerman's
newly formed media and entertainment company, CKX, Inc.
Elvis businesses had total revenue of $44.9 million for 2003
and $37.9 million for the nine months ended September 30,
2004. Net operating income before depreciation and amortization
for those periods was $12 million and $9.4 million, respectively.
deal is structured so the title to Graceland and most of Presley's
personal effects remain with Lisa Marie Presley.
part of the transaction, RFX will contribute $3.43 million
to SPEA in exchange for 34,320,124 newly issued shares of
SPEA common stock. In addition to the shares received from
the company, RFX will receive warrants to purchase 8,689,599
shares of the common stock at $1.00 per share, warrants to
purchase 8,689,599 shares of common stock at $1.50 per share,
and warrants to purchase 8,689,599 shares of common stock
at $2.00 per share.
with this exchange, RFX will also acquire an aggregate of
2,240,397 shares of the company's common stock directly from
certain principal stockholders of the company at a price of
$0.10 per share. Upon consummation of these transactions,
RFX and its affiliates including Mr. Sillerman will own approximately
94 percent of the outstanding common stock of the Company,
and assuming exercise of the warrants, will own approximately
96 percent of the then outstanding common stock of the company.
with RFX's contribution, Ms. Presley will contribute 85 percent
of the outstanding equity interests of the two entities that
own the assets of and control the Presley businesses in exchange
for total consideration of approximately $100 million, consisting
of approximately $53 million in cash, approximately $22 million
in Preferred Stock of SPEA, 500,000 shares of SPEA common
stock and the assumption or extinguishment of approximately
$25 million of outstanding indebtedness. Ms. Presley will
retain a 15 percent interest in the two Presley entities,
which will operate as 85 percent-controlled subsidiaries of