Negotiation Planning

Name: Ben Shenkar______

PLANNING DOCUMENT FORM

Negotiation: moms.com Role: Kim Taylor for WCHI - buyer

What issues are most important to you? (list in order of importance)

1.Licencing fee bundle with “Juniors” teenage show with licensing fee of 40-60K max/episode= 1-2M

2.Runs/episode of 7-8 = 900K-1800K

3.Payment terms 0-3M dollars. On each 10% (600-400K) I save 40-60K/year

For 60/episode 20-20-20-20-20 = 600+ 480 +360 +240 =1680K savings

For 40/episode 20-20-20-20-20= 400 +320 + 240+160= 1120K saving

4.

5.

What is your BATNA? Reservation Price? Target?

BATNA - 3M = licensing 80K, 7 runs, all upfront

Reservation Price – 4M

Target – 5.4 M

What are your sources of power?

BATNA of 3M net programming value

Cash upfront

What issues are most important to your opponent? (list in order of importance)

1.Licensing fee

2.Financial terms

3.Runs/episode

4.

5.

What is your opponent’s BATNA? Reservation Price? Target?

BATNA

• Licensing 30K

• FT – 100% upfront = assuming each 10%/year equals 15% additional savings of the amount paid then savings of 75% =

• Runs episodes - 6 =800K savings saving, 8 = 0 savings

Net revenue = net rev – (debt – savings) = 3M- (2.5M - 2.25M)= 3M

Reservation price = 3.5M

Target= 5

What are your opponent’s sources of power?

BATNA given by WWIN

What is your opening move/first strategy? Other important information?

• Confirm issues most important to me and to him and try and find synergies(more runs/episode?)

• If not then consider revenue sharing(400/1200) to incentivize more runs

• Understand his estimate to the likelihood of ratings and if they are more positive than mine I will offer revenue sharing from above rating of X – and in return demand a corresponding licensing fee reduction so that way we can reach a lower license rate for me with similar profit for him and for me( my estimation of rating likelihoods will result in a...