Love me legal and tender…

October 26, 2005

Nearly 30 years after Elvis Presley died, Lisa Marie has found a way to continue cashing in. Back in February, Lisa Marie, the sole benefactor of the Presley estate, sold 85% of her interest to a company called CKX Inc. (CKXE) for around $100 million including cash, stock and debt. At the time, Lisa got $3 million up front and receives an annual payment of $550K. But as the company notes in a recent 8-K, Lisa also got a 10-year contract to provide unspecified consulting services. That contract pays her $560K a year. Elvis’ ex-wife Priscilla also continues to cash in and is also under a 10-year contract that pays her $560K a year for the next 10 years.

When CKX went public late last year via a reverse merger with a company called Sports Entertainment Enterprises (old ticker:SPEA:OB), the plan was to exploit the Presley empire and has since morphed into exploiting the American Idol franchise, which the company acquired in March. But the stock, which in fairness did rise to nearly $30 from a penny stock, has sunk close to the IPO price of $11 a share.

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