Moms.Com Negotiation

INTERESTS

ALTERNATIVES

Our:

• Improve the ranking and financial position of the station
• Purchase Moms.com and maximise net value of the bargaining agreement, This would mean

• Minimising licence fee
• Maximising program runs per day
• Delaying payments as much as possible

• Use Moms.com deal to negotiate a better price for the Juniors show (<$20,000 per episode)

Their:

• Improve the financial position of the business
• long term growth and sustainability of the business
• Sell Moms.com to an independent station with ideal target audience demographic (24-54 yr old women) and available prime time slots (6 pm)
• Maximise profits from the sale. This would mean

• Maximising licence fee
• Minimising program runs per day
• Getting payment as soon as possible

• Sell Juniors along with Moms.com and maximise the licence fee

Our:

• Settle for another program with the net programming revenue of $3,000,000

Their:

• Sell Moms.com to WWIN who might offer a better price but is unlikely to put the show in the 6 pm slot because of its existing strong show

OPTIONS

LEGITIMACY

Multiple solutions to maximize value

• Deal Moms.com only under one of various possible scenarios, for example

• Run of 6, licensing fee of $40k and payment of 50% up front and in the 1st year. NVBA is $1.6M.
• Run of 6, licensing fee of $60k and payment of 20% annually from 1st year. NVBA is $1.2M.
• [Extreme] Run of 6, licensing fee of $30k and payment of 100% in 5th year. NVBA is $3.9M.
• [Extreme] Run of 6, licensing fee of $54k and payment of 100% in 1st year. NVBA is $0M.

• Deal Moms.com (as above) together with the Juniors Show for anywhere less than $20,000 per episode of the show

Objective, external and neutral arguments

To promote my options:

• Although WWIN might offer a better price for the show, they are not going to put the show on the prime time slot and that will affect the popularity of the program among the ideal demographic (25-54 year old women)
• Happy to consider buying Juniors program together with the show, which would not only promote HOLLYVILLE status in market but also improve its financial position

To challenge their options:

• Poor network season with two shows that HOLLYVILLE had planned for syndication were never sold
• There aren’t many stations available in the market that would provide right slots and ideal target audience demographic – a fact that has affected HOLLYVILLE in the past as well

COMMITMENT

RELATIONSHIP

Purpose for the meeting:

Discuss the sale of Moms.com under various possible scenarios

What authority do you have?

I have the authority to close the deal on behalf of WCHI

What authority does the other party have?

To close the deal on behalf of HOLLYVILLE

Desired level of commitment:

Specific steps for successful implementation of agreement:

• Deciding on the timeline (start date) for the show
• Deciding on the roles to be played by WCHI and HOLLYVILLE regarding factors such as
• Promotion of the show
• Quality of episodes

Current:

• They don’t have a current working relationship
• They may have interacted in the past but don’t do so on a regular basis

Preferred:

• Establish a healthy working relationship on the basis of mutual respect, trust and integrity
• Interact more frequently to discuss any issues, concerns, propositions etc.
• Feel comfortable working together

Specific steps YOU might take to move towards the preferred relationship:

COMMUNICATION

Opening Statement:

Nice to meet you! I hope that we will able to carve out a mutually beneficial deal, that would just be a starting point of our great long-term relationship

Agenda and Issues to be discussed:

1. Introduction
2. Sharing of initial thoughts on the deal and how can one party be beneficial to the other
3. Discussing various possible deal options
4. Closing on a mutually beneficial option
5. Signing of a LOI/Term sheet

Questions to ask:

• What are your goals for the upcoming season of the show?
• Do you have any concerns regarding what WCHI can offer HOLLYVILLE in terms of target audience, prime time slots etc?

Assumptions to test:

• Knowledge of WCHI and what it can offer
• Knowledge of the other TV stations available in the market – in terms of availability of ideal spots, population demographic targeted by those stations etc.

• WWIN’s primary motivation for paying a higher price for the show

Messages to send:

• WCHI is genuinely interested in purchasing both Moms.com and Juniors and promoting them
• We are happy to work on a deal that would be mutually beneficial
• We may not offer the best price but will make sure that the show gets more popular among the right audience, which would improve HOLLYVILLE’s position in the market and definitely benefit them in medium to long-term