Elvis Has Left The Building

From Bloomberg:

Lisa Marie Presley, daughter of Elvis Presley, sold a controlling stake in the business that manages her father’s music rights and Graceland mansion for $100 million to former concert promoter Robert F.X. Sillerman.

Presley sold 85 percent of Elvis Presley Enterprises, which had revenue of $45 million in 2003, Sillerman and Lisa Marie Presley said in a statement. Sillerman said he plans to take the company public as part of a new media company.Something is clearly fishy about this deal, as evidenced by the sale of Rent.com to eBay for $415M, which was announced the same day. Rent.com expects to reach $40 million in revenue in 2004.

It’s not an apples to apples comparison, but it sure looks like the Presley estate was seriously undervalued by Lisa Marie. Later in the article, a hint as to the real reason for the sale is dropped.

She also will receive 500,000 shares of common stock or agree to “the extinguishment of approximately $25 million in outstanding indebtedness,” according to a statement by Sports Entertainment Enterprises Inc., a company Sillerman will use to form CKX Inc., which will hold the Presley stake.

Being $25 million in debt would explain the fire sale…

Putting The Genie Back In The Bottle
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2 Comments

  1. -S- December 19, 2004
  2. ekay December 25, 2004