Simon Cowell Scores $42 Million in Deal With Sony for SyCo (Report)
LONDON – Simon Cowell coralled £27 million ($42.3 million) as part of the deal to create his new entertainment joint venture with Sony Music, according to a report in The Guardian newspaper.
According to documents filed at Companies House in the U.K., the TV-and-music mogul was paid $42 million for a stake in his new company in a deal with Sony Corp.
Syco Entertainment was formed in 2010 in a deal that saw Cowell win back a share of formats such as The X Factor and ... Got Talent from Sony.
Cowell had been forced to hand the rights to the record label over in 2005 to the other Simon, Simon Fuller, the tycoon behind reality music show Pop Idol, who had brought a copyright infringement claim.
For his 50% stake in Syco, Cowell contributed his company Maidmetal.
According to Companies House records, The Guardian says that Syco’s first annual accounts held there show that in return Cowell was paid $42.3 million.
Sony part paid for its 50% stake in the company with £31 million (48.6 million) in cash.
The record company also handed over Simco, the production company behind The X Factor that Cowell sold in 2005, and another former Cowell company, Ronagold, which was initially founded as the home of Pop Idol stars Gareth Gates and Will Young.
The joint venture between Syco and Sony has four arms, Simco, Maidmetal, Ronagold and Syco Touring.
Simco is a television division, Maidmetal a publishing arm, Rongagold the record production and promotion division and Syco Touring runs Cowell’s artists’ tours.