Graceland Put On The Market

Elvis Presley’ Graceland mansion and rights to the images of Elvis and Muhammad Ali are on the market with a possible price tag of more than $200m, people familiar with the process said.

Three people familiar with the process said Core Media Group, the entertainment group behind TV programmes such as American Idol and So You Think You Can Dance, has begun approaching potential bidders from Asia, Europe and the US for Elvis Presley Enterprises and Muhammad Ali Enterprises. 

Core, known as CKx before Apollo Global Management bought it for $509m in 2011, has appointed The Raine Group, a New York merchant bank, to review strategic alternatives, two of these people said. It is testing the market but could keep both if it is unhappy with the offers it receives, they said, but Core hopes to focus on producing content for television and digital outlets. Core and Raine declined to comment.

More than 35 years after Presley’s death and 32 years after Ali’s retirement, the two assets generate revenues of about $60m a year and earnings before interest, tax, depreciation and amortisation of about $23m, according to a briefing document sent to potential bidders. 

Despite the 38 per cent ebitda margin, a record of stable, predictable cash flows and a history of revenue raising Elvis re-releases, people familiar with the Presley estate see significant potential for expansion if a buyer is willing to invest.

Possible investments include an Elvis-themed hotel near Graceland in Memphis, a stage show in an Asian casino hub such as Macau, and digital and social media expansion. People familiar with the estate add that per capita spending by Graceland’s 550,000 annual visitors is relatively low and could be improved.

The Presley family, represented by the singer’s daughter, Lisa Marie, retained 15 per cent of the company when it sold the remainder to Robert Sillerman’s CKx for about $100m in 2004. The Ali family owns 20 per cent of Muhammad Ali Enterprises.

The unusual combination of brand management rights for two of the 20th century’s most recognisable brands with a tourist destination that has become a place of pilgrimage for many music fans is likely to attract a diverse set of buyers.

These could include music and live entertainment companies and executives, developers, wealthy fans and local Memphis businesspeople.

Elvis Presley Enterprises includes:
More than 110,000 pieces of memorabilia, including 3,000 pieces of clothing and 30 vehicles; royalties from 24 films; and copyrights and royalties for 1,150 songs.

Muhammed Ali Enterprises controls:
11,000 images, 50 hours of footage from the boxer’s life and career, and 5,000 pieces of memorabilia.

Sony Music’s Legacy Recordings division holds the rights to all Presley’s master recordings, and has overseen several reissues, including plans to release a deluxe edition of “Elvis at Stax” in August.

Core considered a bid for Endemol before the European television production company’s owners put sale talks on hold. A successful sale could raise proceeds for a renewed attempt to buy Endemol or other production businesses.

NOTE: it's the business, not the house itself.

Source: The Elvis Express / Updated: May 21, 2013
Elvis Presley on: eBay, iTunes, Amazon, Sheetmusic

Reactions

benny scott (profilecontact) wrote on May 24, 2013report abuse
Right you are Jerry ! Seems Lisa-Marie already had the following reaction : "Graceland is NOT for sale, Graceland and it's contents is my property ". Always El.
JerryNodak (profilecontact) wrote on May 24, 2013report abuse
Chill out people! In spite of what the article says, Graceland is NOT for sale!
Clemmie (profilecontact) wrote on May 23, 2013report abuse
Baby, It never ceases to amaze me!.......of the continuation of rampant..... greed.......pervasive in this nation of ours. I can only hope that the Graceland mansion will be protected by its' staus as a national monument. Elvis was a fervent and passionate patriot during his lifetime......can only hope that in this instance, his country (government) will protect his home. After all, Elvis is a part of .........'Americana'..........we owe it to him.
KidGREEDhead (profilecontact) wrote on May 23, 2013report abuse
Well said Cookhead ! I think there is... Well, let's go for it, Lisa & Cilla ! Fully endorse your business attitude. Normal behaviour of the rich & famous, I'd say. And always maintaining the Colonel's greedy spirit behind every deal that you both can get (even) more money from. Don't blame you. Just perhaps a more "social" twist...Why not open it up even more and offer a one (1) percent of shares to ALL of Elvis' former girlfriends and movie co-stars ( Linda, Ann-Margret, Shelley, Mary-Ann, Joanne, Juliet, Debra a.o. plus another 1% to each of the Jordanaires as well as 1% to eeach of his TBC band members, to Voice and the other vocal group members ? It would certainly have to be offset with promotional activities that those 1% stock-owners get, will have to do in coming years (as long as they are shareholder of something (read: huge successes) they were part of then ! All this, rather than a wealthy arab sheik who pays US$600 mio. for the whole thing and closes down Graceland; thereby not allowing all elvis-fans to visit his mansion.

Wonder though if they find (and I hope they do !) that new investor, what his/her new marketing strategy will be and how fans will get more Elvis product, especially more music + movies to enjoy !! Wonder, really, if we'd be better off ?
Really look forward to all fans' (commercial or business) comments & opinions. NJHo wise-guys or unhealthy comments please. No need for those guys that suffer (like Nicholson) from that "last word freak syndrome". Be positive ya'all.
cookingfat (profilecontact) wrote on May 23, 2013report abuse
Is there a fat bloke with a fat cigar behind this?
KidGalahad79 (profilecontact) wrote on May 22, 2013report abuse
Graceland is owned by Lisa Marie, all of her fathers belongings are also owned by Lisa. The only thing that is for sale is whatever ckx purchased along time ago.
sunrecords56 (profilecontact) wrote on May 22, 2013report abuse
This could mean that some one with a lot of money could buy Graceland and all the toys for his/her own private pleasure and there are people all over the world that at this price its you dropping 200.00 in a slot machine
Dr. Elvis Eyes (profilecontact) wrote on May 21, 2013report abuse
Anything can be purchased. I don't think being a n historical building stops the sale. What will stop the sale is paying more money than they can get in return. First they purchase for $150 million and then they still have to pay to develop and promote. Not likely.
nonna pat (profilecontact) wrote on May 21, 2013report abuse
Graceland (and the contents therein) can never be sold because it is now on the U.S. listing of Historical Places. It can not even be painted another color (hence the use of colored lights for various causes during the year). This includes the 13.2 acres of property. As for the rights to market Elvis' name, accomplishments and images - this can be bought by anyone with the right amount of cash in their deeeeeeep pockets.

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