CKX expects to meet EBITDA requirements for 19X buyout

By Lisa Kerner

Charlotte, N.C., Jan. 24 - CKX, Inc. said its preliminary estimated financial results for the year ended Dec. 31 should "significantly surpass" the minimum EBITDA requirement of $66.5 million necessary for the debt needed to finance the company's buyout by 19X, Inc.

Audited financial results are expected to be announced by the end of February, according to a company news release.

CKX reported revenues of approximately $265 million and operating income before depreciation, amortization and non-cash compensation of some $70 million.

"While there are still several significant conditions to closing the buyout, meeting this previously announced material requirement of the debt financing is a major achievement, and is a testament to both the strength of our business and the focused energy of all our employees," CKX chairman and chief executive officer and 19X chairman Robert F.X. Sillerman said in the release.

"I am optimistic about 2008 and remain fully committed to and confident of the timely closing of the transaction," Sillerman added.

CKX agreed to sell the company to 19X for $13.75 per share.

New York-based CKX owns and develops entertainment content.

19X is a private company owned and controlled by Sillerman and Simon R. Fuller, a CKX director and CEO of 19X subsidiary 19 Entertainment Ltd. London-based 19 Entertainment produces entertainment properties, including "American Idol."

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