"Simon and the band look forward to many years of continued success together.", a spokesperson said.
While £50 million sounds like a lot, it's probably not a dent in the huge earnings Simon's taking from One Direction merchandise, music, films and their Our Moment fragrance.
The deal will mean One Direction will continue releasing new material up until 2015 (that's at least another two albums), including their third album Midnight Memories out in November.
Anyone else hoping for a single titled 'We had the Best Song Ever, But This Is Better'? (don't laugh, it'll probably happen)
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