Gateway Industries Inc. (PINK: GWAY) shares are seeing a huge rally in today�s trading after the company announced that Robert F.X. Sillerman will acquire it. The penny stock reached a 52-week high $2.97 in mid-day trading, and at last check, it was up 19,400% to $1.95.
Sillerman, who is a leading media entrepreneur, reached an agreement to acquire control of Gateway Industries. Sillerman said that he will use the company as the vehicle for his new venture. Following the closure of the transaction, Gateway will be recapitalized and renamed Function (X) Inc. and will trade under the ticker symbol FNCX.
Sillerman has in the past launched some of the most successful businesses in television, radio, promotion, marketing and live entertainment. In February 2005, Sillerman formed CKx, a company engaged in the ownership, development and commercial utilization of entertainment content including the popular American Idol show. He resigned as chairman and CEO of CKx back in May 2010; however, he is still the company�s largest shareholder.
Sillerman also founded SFX Entertainment, the world�s largest presenter, promoter and producer of live entertainment. The company was sold to Clear Channel Communications back in August 2000.
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