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…