19X to pay $37.5 million termination fee after failing to acquire CKX

By Lisa Kerner

Charlotte, N.C., Nov. 3 - 19X, Inc. terminated its amended merger agreement with CKX, Inc. on Saturday, it was reported in a form 8-K filed with the Securities and Exchange Commission.

According to the filing, 19X was unable to close the transaction because of "extraordinary national and global economic conditions."

19X said it will pay $37 million of the termination fee by delivery of 3,339,350 shares of CKX common stock valued at $11.08 per share, with the remaining $500,000 of the termination fee to be paid in cash.

19X is a private company owned and controlled by Robert F.X. Sillerman, the chairman and chief executive officer of CKX, and Simon R. Fuller, a director of CKX and the CEO of 19 Entertainment Ltd., a wholly owned subsidiary of CKX.

In September, it was reported that Sillerman doubted that his company could close the pending acquisition of CKX, a New York entertainment content developer, for $12.00 per share or by the transaction deadline, which was Friday.

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