Simon Cowell’s Syco Entertainment has struck a deal worth $125M for the securitization of the Got Talent franchise.
Advisor ACF described the agreement as “the first of its kind”And “groundbreaking,”Securitizes intellectual properties behind Got TalentIt is currently available in 72 territories around the world, as well as the U.S., UK or international versions. Production margins, fees, digital income, franchise sales, original content sales, and sponsorship income are all considered securities.
This deal structure is often used in the music business to create royalty income streams.
ACF claims that Syco will now have a war chest thanks to the two-year-old deal. “grow the business through a mixture of strategic acquisitions and organic growth projects.”
ACF was Syco’s lead bank, and advised Syco in the UK as well as the US. Memery Crystal, a multidisciplinary international law firm based, advised Simon Cowell’s Syco Entertainment.
Thomas Dey, ACF’s Founder and CEO, said: “ACF worked with Syco to formulate this financial strategy to support its plans and managed the entire process as the lead bank. Our brief was to create a structure to enable the Company to maximise the full potential of its existing passive royalty income stream. ACF has created a winning formula using our extensive experience from across the media and entertainment sector. We are certain that this ground-breaking structure will be one that we will use for many media formats in the future.”
Syco’s news comes after it had made numerous redundancies earlier in the year. Cowell was reportedly keen to spend more quality time with his family. Whether today’s news impacts that plan is to be seen.