CKX, 19X amend merger agreement

By Lisa Kerner

Charlotte, N.C., Aug. 1 - CKX, Inc.'s board amended its June 1 merger agreement with 19X, Inc.

The amended agreement provides a 60-day extension to the original July 31 deadline for obtaining a financing commitment.

In addition, the "outside date" for completion of the merger has been extended an additional 60 days to April 25, 2008.

The companies attributed the delay to a recent disruption in the credit markets. The agreement is not conditioned upon 19X receiving financing, according to a form 8-K filing with the Securities and Exchange Commission.

A $37 million termination fee, payable by 19X to CKX, is included in the agreement.

As previously reported, CKX agreed to sell the company in a deal that gives stockholders $13.75 per share in cash as well as one share of FX Luxury Realty, LLC stock for each share of CKX they hold.

FX Luxury Realty is an affiliate of CKX chairman and chief executive officer Robert F.X. Sillerman. CKX will be merged with 19X, a private company owned and controlled by Sillerman and Simon R. Fuller, a CKX director and CEO of 19X subsidiary 19 Entertainment Ltd.

CKX acquired 50% of FX Luxury Realty on June 1 for $100 million in cash. FX Luxury Realty is co-owned by Flag Luxury Properties LLC, a real estate development company and a Sillerman affiliate. FX Luxury Realty is part of a control group that owns about 13% of Riviera Holdings Corp. and offered $34.00 per share for the Riviera Hotel & Casino in Las Vegas.

New York-based CKX owns and develops entertainment content. 19 Entertainment is based in London and produces entertainment properties, including "American Idol."

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