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    Negotiation Agreement (Hollyville) - Seller

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    Dimas Fathur
    1. Syndicate 6 negotiated an agreement with Terry Schiller of Hollyville to license Junior's TV show for 100 episodes at $59,500 per episode. 2. The key terms of the agreement include an 8 run per episode adjustment, and financial payments of 50% in year 0, 10% in year 1, and 40% in year 2. 3. The estimated net revenue to Syndicate 6 from the agreement is $4,890,000. Both parties believe the agreement will benefit their future relationship.

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    Negotiation Agreement (Hollyville) - Seller

    Uploaded by

    Dimas Fathur
    424 views3 pages
    1. Syndicate 6 negotiated an agreement with Terry Schiller of Hollyville to license Junior's TV show for 100 episodes at $59,500 per episode. 2. The key terms of the agreement include an 8 run per episode adjustment, and financial payments of 50% in year 0, 10% in year 1, and 40% in year 2. 3. The estimated net revenue to Syndicate 6 from the agreement is $4,890,000. Both parties believe the agreement will benefit their future relationship.

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    Negotiation Agreement (Hollyville)-Seller

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    1. Syndicate 6 negotiated an agreement with Terry Schiller of Hollyville to license Junior's TV show for 100 episodes at $59,500 per episode. 2. The key terms of the agreement include an 8 run per episode adjustment, and financial payments of 50% in year 0, 10% in year 1, and 40% in year 2. 3. The estimated net revenue to Syndicate 6 from the agreement is $4,890,000. Both parties believe the agreement will benefit their future relationship.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    424 views3 pages

    Negotiation Agreement (Hollyville) - Seller

    Uploaded by

    Dimas Fathur
    1. Syndicate 6 negotiated an agreement with Terry Schiller of Hollyville to license Junior's TV show for 100 episodes at $59,500 per episode. 2. The key terms of the agreement include an 8 run per episode adjustment, and financial payments of 50% in year 0, 10% in year 1, and 40% in year 2. 3. The estimated net revenue to Syndicate 6 from the agreement is $4,890,000. Both parties believe the agreement will benefit their future relationship.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Syndicate 6

    1. Aulia Adzkia Fauzi / 29119411


    2. Alvin Adi Nugraha / 29119448
    3. Dimas Fathurrahman / 29119477

    NEGOTIATION AGREEMENT WORKSHEET


    Terry Schiller (Hollyville) - Seller

    The variables in the agreement:


    ● Licensing fee: $59,500/ episode (we assumed that Junior’s license is a part of bundled
    offer from Hollyville to build a future relationship)
    ● Runs/episode: 8
    ● Financial terms:
    ○ Year 0: 50%
    ○ Year 1: 10%
    ○ Year 2: 40%

    1. Program Revenue
    Licensing fee/episode x 100 episodes $ 5,950,000

    2. Financing Cost
    Payments in year 0 ($ 1,750,000) * 0% $ -
    Payments in year 1 ($ 350,000) * -20% $ 70,000
    Payments in year 2 ($ 1,400,000) * -35% $ 490,000
    Total Financing Cost (​$ 560,000)

    3. Program Revenue Less Financing $ 5,390,000


    4. Runs/Episode Adjustment (​8 runs/episode) ($ 500,000)
    5. Other Pieces of the Agreement $ -
    6. Net Revenue $ 4,890,000
    7. Value of the Alternative Deal $ 2,500,000

    8. NET VALUE OF THE BARGAINING AGREEMENT $ 2,390,000


    The Result:

    Figure 1​. Estimated License Fee ZOPA of Buyer and Seller

    For the first offer, we open the price at our aspiration price at $70,000 per episode. Then, the
    buyer bid lower and we encountered a $60,000 per episode bundled with payment term (DP)
    and Junior’s license but ended up with $59,500.

    Figure 2​. Estimated Run Adjustment per Episode ZOPA of Buyer and Seller

    Figure 3​. Estimated Payment Period ZOPA of Buyer and Seller


    Figure 4.​ Estimated Net Revenue ZOPA of Buyer and Seller

    At the end of negotiation, we finally got an offer of net revenue at $ 4,890,000. In the
    agreement, we deal with licensing fee/ episode at $ 59,500, with 8 runs/ adjustment, and
    financial payment terms for 3 times payment with 50% at year-0, 10% at year-1, and 40% at
    year-2. Overall in this agreement, we won on licensing fee per episode, financial term period,
    and financial term proportion issues. On the other side, the other party won on the number of
    runs/episode by 8 runs/episode. And both of the parties won on making future relationships
    by making deals with Junior shows. In addition, for their perspectives we might win in terms
    of payment period, because we think they really want payments to be made within 5 years.
    Both of us are considering our future relationship. Our consideration is to sell Junior TV
    programs, and the other party considers raising their rating (engaging with their audience)
    and revenue towards advertisement fee. We convince them that the program can boost the
    audience up as our projection that will give them benefit too.

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