Sony spends £86m on 50% stake in Simon Cowell’s Syco Holdings

Sony has been an acquisitive beast in music of late – snapping up Ministry Of Sound, Essential Music and Century Media for a combined £82m since summer 2015.

But its biggest buyout of recent times was more inward-looking.

According to new financial filings in the UK, Sony acquired a 50% stake in Simon Cowell’s label, touring and TV company Syco Holdings Ltd for for £86.456m ($105m) in July 2016.

As an indirect consequence of the purchase, Sony gained an additional 25% investment in Syco Entertainment Ltd.

A sum of £52.405m was paid in cash by Sony, with a further £33.396m taking the form of loan notes issued by Syco Holdings Ltd.

This money will eventually be paid by Sony before 2021.

Simon Cowell is expected to net around £45m from the deal.

It is believed that, as a result of the agreement, Sony now takes a 75% share of Syco Entertainment Ltd.

Different financial filings suggest that the major previously owned 50% of the share capital in this company.

Sony official renewed its joint venture with Syco in 2015 for another six years.

Syco Holdings made a profit of just over £1.461m in the 39 week period ending March 2016.

Syco Entertainment Ltd posted an annual profit of £19.014m in the year to the same date.

Other interesting information: On July 6, 2015 Syco Entertainment Ltd paid a dividend to Sony of £7.89m.

And as of March 31, 2016, Syco Entertainment owed Sony £69.85m.

Syco Holdings is made up of holding company Syco Entertainment, TV production arm Simco and brand partnerships firm Crystal Entertainment, plus record licensing Ronagold Limited and live arm Syco Touring.

Affiliated companies include TV production firm Over The Top Productions (owned 70%) and artist development firm Triple Strings Ltd (owed 50%).

Syco Holdings also owns a 42.5% share in the The X Factor Musical Limited and 50% share of X Factor Musical West End Limited, as well as a 50% interest in TV production Musica LLC.

Music Business Worldwide

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