Monday, January 11, 2010

Happy (late) Birthday, Elvis. And a nice windfall for Simon Fuller, Lisa Marie Presley too (CKXE)

In a case of "wow, we've got that other nice division too!", CKX (CKXE) is up 12% today, as they have an 85% economic interest in The King.  Investors are plowing into shares after rumors of huge turnout at Graceland to celebrate Elvis' 75th birthday.


While the bulk of revenue and operating income at CKX comes from their ownership of the American Idol franchise, they also own most of the rights to Elvis' likeness and proceeds from a Graceland museum and nearby attractions:





While the Elvis division contributes only 17% of revenues, the division's 30% operating margin is awesome:





After his initial $210million windfall selling his 19 Entertainment, Simon Fuller still owns about half a million CXKE shares.


Copyright 2010 AlphaNinja

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