Are One Direction making money off of 5 Seconds of Summer's success? While this has long been rumored, Billboard.com has now confirmed that 1D have a secret financial investment in 5SOS.Eh, it's just good business, right?
One Direction and 5 Seconds of Summer are both represented by Modest Management. Back in August, reports emerged that the members of One Direction own a share of a London-based company called 5SOS LLP. Billboard now confirms that the guys of 1D are registered partners for the company along with 5SOS and One Mode Productions.
Billboard reports: "According to the documents filed at London's Companies House, the split allots for 120 shares: 1D holds 50 percent, and the managers hold the other 50."
They further crunch some rough math to see what the 1D guys are making currently from the 5SOS investment, with further earnings to come with merchandise. So...5 Seconds of Summer does well and so does 1D.
An insider told Billboard, "The thinking is, 'The bigger these guys get, the more money we make,'" adding, "They're going to put someone on as the opening act on the tour anyway, why not put somebody that they have a financial interest in?"