7/31/2017 11:16 PM
Potential Sony Asset Contributions
Simon Cowell / Philip Green Meeting
June 3, 2009
Overview
Sony Pictures TV, Sony/ATV Music Publishing and Sony Computer Entertainment
have high value opportunities based on collaboration with Simon Cowell creating a
potential value of more than $1 billion.
2
Sony Pictures Television (SPT) Opportunities
Gregg’s
Language
• SPT is the #1 independent producer of TV content and the owner of the #1 and #2
•
•
V Production / Dev
•
Partnership
•
syndicated game shows on TV as well as the #1 TV comedy in history.
SPT’s library includes 150,000 episodes from 500 TV series and more than 4,000 feature
films.
Potential for SPT to contribute specific properties to the venture with Simon (I will be
mportant to understand areas of interest to Simon as available value varies by show).
Simon would leverage Sony’s expertise, relationships, assets, and library to develop new
shows
– A major new hit could result in annual cash flow of as much as $100 million, which
could be shared by Simon and SPT.
Below is a list of projects currently underway – Simon can identify in which of these projects
he would like to participate, and SPT is prepared to share upside value with him on those
projects.
Ordered to Series
Pilot Orders
Active Development
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
The Sing-Off
Shark Tank
Newlywed Game
Make My Day
Pyramid
Dating Game
The Empire
All-Star Mr. & Mrs.
Honey Please
Strongest American
It's a Knockout: The US vs France
Fire in the Hole
End of Steve
The Platform
Fantasy Island
Pursuit of Happyness
Kid Rodeo
Kid Talent Agency
WARdrobe
Lucky
Back to School
Your Kid's an Idiot
Cru
Fort Pitt
Partridge Family
Dead Lawyers
Wedding Planner
Untitled Will Arnett / Mitch Hurwitz
Project
3
Sony Pictures Television (SPT) Opportunities
Jim’s
suggested
Changes
• SPT is the #1 independent producer of TV content and the owner of the #1 and #2
syndicated game shows on TV as well as the #1 TV comedy in history.
• SPT’s library includes 150,000 episodes from 500 TV series and more than 4,000 feature
•
V Production / Dev
Partnership •
films.
Simon would leverage Sony’s expertise, relationships, assets, and library to develop new
shows under an overall deal
– A major new hit could result in annual cash flow of as much as $100 million, which
could be shared by Simon and SPT
Opportunity for Simon to take a stake in SPT properties, including scripted or unscripted
series and existing or new shows
– Potential for SPT to contribute stakes in properties to the venture with Simon
– Examples of properties in development are listed below, important to understand
areas of interest to Simon as available value varies by show
Ordered to Series
Pilot Orders
Active Development
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
The Sing-Off
Shark Tank
Newlywed Game
Make My Day
Pyramid
Dating Game
The Empire
All-Star Mr. & Mrs.
Honey Please
Strongest American
It's a Knockout: The US vs France
Fire in the Hole
End of Steve
The Platform
Fantasy Island
Pursuit of Happyness
Kid Rodeo
Kid Talent Agency
WARdrobe
Lucky
Back to School
Your Kid's an Idiot
Cru
Fort Pitt
Partridge Family
Dead Lawyers
Wedding Planner
Untitled Will Arnett / Mitch Hurwitz
Project
4
Sony Pictures Television Opportunities
Network
• The Game Show Network (GSN) would provide an outlet for a
•
•
and Game•
•
•
defined number of Simon’s game shows each year (number of
shows / format would be negotiated).
Potential for Simon to take a significant equity stake in GSN –
SPT would contribute up to 50% of SPT’s 35% stake in GSN
(GSN’s total equity value approximately $800MM).
Simon could have a dedicated programming block on GSN.
Liberty plans to merge GSN under DirecTV brand. GSN available
Partnership
in 68MM homes, DirecTV has 18MM U.S. subscribers.
Simon, GSN, and FUN Technologies (leading provider of online
casual and fantasy sports games and sports information) would
collaborate in developing online skill-based games.
Deal would build on Sony’s partnership with IGT and history of
introducing the most successful gaming machines of all time to
offer slot machines based on Simon’s game shows.
• Potential for SPT to contribute 10% to 35% of SET India (SPT currently
owns ~60% and Simon could replace the current minority partners
and/or take a portion of SPT’s stake).
• SET India is India’s most popular Hindi-language general entertainment
ET India Partnership
channel.
• The value of SET India may be as high as $1 billion or more with
Simon’s involvement.
Value for
Simon
Cowell:
$150300MM
Value for
Simon
Cowell:
$100 –
400MM
5
Sony/ATV Opportunities
• Simon Cowell to facilitate the sale of the Mijac catalog to
Sony/ATV (or to a new entity created for that purpose).
• Mijac owns the publishing rights for all of Michael Jackson’s music
as well as for the entire catalog of Sly and the Family Stone along
with a number of high-value individual titles from Elvis and other
artists.
• Sony/ATV will lend Simon Cowell the funds or arrange for the
financing to allow Simon Cowell to purchase up to a 1/3 interest in
the catalog.
MIJAC
Value of
Simon
Cowell’s
Stake:
$25-35MM
• Sony/ATV would provide a fund of $10 million for new
•
•
Joint Venture for•
New Signings •
•
•
signings. Simon Cowell would contribute $1 million.
Three year term.
Simon Cowell would be able to put deals to Sony/ATV subject to
certain agreed upon parameters (standard copublishing terms).
Sony/ATV would act as administrator for a fee of 15% of total NPS.
NPS after admin fee is split 50/50 between Simon Cowell and
Sony/ATV.
Simon Cowell will commit to minimum of two deals per year over the
term.
Copyrights would be owned on a 50/50 basis.
Value
Creation for
Simon
Cowell:
$10-15MM
6
Sony Computer Entertainment Opportunities
• 70 million PlayStation 3 and PlayStation Portable devices.
• Young male demographic.
• Platform
n Cowell Channel on
PS3 where Simon can test new ideas.
• Experiment with TV and gaming content.
and PSP
• Successful ideas can move from the PlayStation platform to
broadcast or cable TV as well as become game concepts
Simon Cowell
Channel
S
i
m
o
n
C
o
w
e
l
l
C
h
a
n
n
e
7
Sony Computer Entertainment Opportunities
Value for Simon Cowell: $5-15MM
• An X Factor/Got Talent Songpack
• An X Factor/Got Talent "MySingStarOnline" (online user-generated video site)
SingStar
singing competition in which the winner gets a finalist place in the X Factor show.
• A Simon Cowell avatar that hosts the Saturday "Prime Time" singing competition.
• A TV show hosted by Simon Cowell that mimics the Prime Time singing competition
in SingStar.
• X Factor/Got Talent backstage and uncut clips sold as bonus content on the
PlayStation Store (with ITV).
Exclusive interview with Simon Cowell and X Factor/Got Talent contestants sold as
bonus content.
• Could also be available on other Sony devices (e.g. Bravia televisions).
PlayStation Store •
Content
New Gaming
Initiatives
PlayStation
Home
• An X Factor/Got Talent branded console with an X Factor/Got Talent song disc.
• An X Factor/Got Talent game.
• An X Factor branded PlayStation Home Space showing unbroadcasted clips (with
ITV).
• T-shirts in PlayStation Home that "vote for winners".
8