Britannia Radio

TV’s Cowell and UK billionaire join forces

By Matthew Garrahan in Los Angeles and Elizabeth Rigby in London

Published: June 23 2009 21:27 | Last updated: June 23 2009 21:27

Simon Cowell, one of the world’s biggest TV stars, has joined forces with Sir Philip Green, the British retail billionaire, to form a global entertainment company that will create and own television content on both sides of the Atlantic.

The two men, close friends for the past decade, have been working closely together in recent weeks, with Sir Philip travelling to Los Angeles to advise Mr Cowell on a new contract to appear on the Fox network’s American Idol.

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The venture with Sir Philip will effectively act as a holding company for all of Mr Cowell’s entertainment interests, which include Britain’s Got Talent, America’s Got Talent and The X-Factor. But it will also be a springboard for new programming devised or produced by Mr Cowell, with Sir Philip providing business advice.

For Sir Philip, the new company, which has yet to be named, provides a potentially lucrative merchandising opportunity – particularly in fashion, his traditional speciality. It is unclear how much capital Sir Philip will put into the venture.

Mr Cowell, a judge on American Idol, the most-watched US TV programme, has been in talks with 19 Entertainment, which owns the rights to the show, and News Corporation’s Fox network about a new contract. His deal with the programme, the cornerstone of the Fox schedule, expires in May.

Mr Cowell and Sir Philip declined to comment but a person familiar with the talks said a new American Idol deal would probably be struck for Mr Cowell through the new Green-Cowell entity.

Mr Cowell has been offered an American Idol contract that would make him the best-paid star of TV, with a deal likely to surpass even Oprah Winfrey’s estimated earnings, according to a person familiar with the talks.

The person added that Mr Cowell was keen to agree new deals with all of his broadcasting and music partners. His long-term deal with Sony Music comes to an end next year. Sony is eager to keep him on board thanks to the success of acts such as Leona Lewis, who were discovered by Mr Cowell through The X-Factor, his UK singing competition show.

Sir Philip and Mr Cowell want to ensure a smooth transition to the new company, said another person familiar with the situation. “Philip is only interested in working with existing partners and not new partners,” the person said.