Potential Sony Asset ContributionsPotential Sony Asset ContributionsSimon Cowell / Philip Green MeetingSimon Cowell / Philip Green Meeting

June 3, 2009

04/19/23 06:51

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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.

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Sony Pictures Television (SPT) Opportunities

TV Production

/ DevPartnership

• 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 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

Gregg’sLanguage

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Sony Pictures Television (SPT) Opportunities

TV Production

/ DevPartnership

• 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 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

Jim’ssuggestedChanges

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Sony Pictures Television Opportunities

$150-300MM

Value for Simon Cowell:Game Show

Network and Game

Partnership

• The Game Show Network (GSN) would provide an outlet for a 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

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.

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Value for Simon Cowell:

$100 – 400MM

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Joint Venture for

New Signings

Sony/ATV Opportunities

MIJAC

• Sony/ATV would provide a fund of $10 million for new 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. 

• 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. 

$25-35MM

Value of Simon

Cowell’s Stake:

$10-15MM

Value Creation for

Simon Cowell:

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Sony Computer Entertainment Opportunities

Simon Cowell

Channel on PS3 and PSP

• 70 million PlayStation 3 and PlayStation Portable devices.

• Young male demographic.

• Platform where Simon can test new ideas.

• Experiment with TV and gaming content.

• Successful ideas can move from the PlayStation platform to broadcast or cable TV as well as become game concepts

Simon Cowell Channel

Simon Cowell Channel

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Sony Computer Entertainment Opportunities

SingStar

• An X Factor/Got Talent Songpack• An X Factor/Got Talent "MySingStarOnline" (online user-generated video site)

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.

• An X Factor branded PlayStation Home Space showing unbroadcasted clips (with ITV).

• T-shirts in PlayStation Home that "vote for winners".

• An X Factor/Got Talent branded console with an X Factor/Got Talent song disc. • An X Factor/Got Talent game.

• 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 Home

PlayStation Store

Content

New Gaming

Initiatives

Value for Simon Cowell: $5-15MM