UPDATE: This blog entry has been updated with more information. Read the latest information after the jump.

In a surprise move that will rock the entertainment industry, Simon Cowell will purchase CKX, Inc., the company that owns 19 Entertainment, which in turn owns the hit TV show, American Idol.

According to an anonymous source within CKX, Cowell made the surprise buyout offer last weekend. The source says that Chairman Edward Bleier and CEO Michael G. Ferrel have agreed to the buyout offer.

Cowell will reportedly buy the company for $565 million in cash and the assumption of $100 million in debt. But this isn’t simply a way for Cowell to get his foot back into American Idol.

The anonymous source, who asked to remain anonymous because he wasn’t allowed to speak publicly about the buyout, says that Cowell will dismantle American Idol at the end of the season.

According to the source, Cowell has been upset with what Simon Fuller and Nigel Lythgoe have said about Cowell in the press. In addition, Cowell was very upset when he learned that Fuller had extended the Idol summer tour into September, believing it was a deliberate act by Fuller in order to deflect attention from the premiere of The X-Factor in September.

Once the purchase goes through at the end of May, the source says Cowell will dismantle American Idol, making his new X Factor the new premiere singing competition on television.

No word yet from Idol creator Simon Fuller or executive producer Nigel Lythgoe.

APRIL FOOL!