"Paula Abdul will reportedly set up her own record label.

The former American Idol judge, who confirmed her departure from the reality show in August, will allegedly sign ex-contestants who have failed to launch successful music careers.

"Paula's not naming any names because she wants to sign talent quietly so she can maximise her investment," a source told The National Enquirer.

"But she definitely has her eye on artists who released records, and then got lost in the shuffle."

Abdul is rumoured to be interested in snapping up Katharine McPhee, Blake Lewis and Taylor Hicks, who have all been dropped by label 19 Recordings." (Source: Digital Spy)