Simon Cowell is one the the worlds biggest TV stars, known all over the globe for his harsh comments to talent show participants. Simon has announced today that he is joining forces with retail billionaire, Sir Philip Green, to form a global entertainment company, which will create and own television content on both sides of the pond.

The two men have been close friends for many years, and are regulars on the London party scene, but its the first time the pair have joined forces to create a new business venture. Sir Philip Green, the owner of UK retailers Top Shop and BHS has been advising Simon Cowell on a new contract to appear on American Idol.

The venture between the pair will effectively act as a holding company for all Simon Cowell’s entertainment interests, including Britains got Talent, Americas got Talent and The X Factor, but will also provide a springboard for new programming devised or produced by Mr Cowell, with Sir Philip Green providing the business advice.

For Sir Philip, the new company provides him with potentially lucrative merchandising opportunities, particularly in fashion, his traditional speciality. Its unclear how much capital Sir Philip will put into the venture, and he’s so far declined to comment on the venture.

Simon, who’s a judge on American Idol has been in talks with 19 Entertainment, which owns the rights to the show, and News Corp’s Fox Network about a new contract. His deal with the programme, the cornerstone of the Fox schedule, expires in May.

Simon has been offered a new contract for American Idol, which, if he accepts would make him the best paid star on TV, with a deal likely to surpass even Oprah Winfrey’s estimated earnings.

An insider which knows about the deal has said that Mr Cowell was keen to agree the new deal, with all his broadcasting and music partners. His long-term deal with record company, Sony Music also comes to an end next year. Sony Music is definitely keen to keep him on board due to the huge success of acts such as Leona Lewis, Paul Potts and il Divo.