Television shows Quote by Joshua Green
““Ted was short of cash.” Westinghouse wanted out. Bannon pleaded with them not to walk away from the bargaining table. “We told them, ‘You ought to take this deal. It’s a great deal,’” he said. “And they go, ‘If this is such a great deal, why don’t you defer some of your cash fee and keep an ownership stake in a package of TV rights?’” Bannon had no interest in getting into the residuals business. But neither did Westinghouse. The company made clear that unless Bannon & Co. swapped its cash fee for residuals the deal was off. “So we took a residual,” he said. In lieu of a full adviser’s fee, the firm accepted a stake in five Castle Rock television shows, including one in its third season that was regarded as the runt of the litter: Seinfeld. At””
About This Quote
Source Article: Bloomberg Business,, “The Bannon Deal” by Joshua Green, 2023
A negotiator swapped cash for equity in TV shows to close a deal, showing flexibility can create value when cash is scarce.
In simple terms: Swapped cash for TV stakes to seal a deal.
Key Takeaway
Consider equity instead of cash when cash is limited.
Themes
negotiation
finance
creative deals
risk management
Mood
strategic
analytical
pragmatic
Type
business
case study
financial.
When to use this quote
- startup funding
- media acquisitions
- contract negotiations
- deal structuring
Key Concepts
equity swaps
incentive alignment
strategic flexibility
Questions to Reflect On
- What assets could you trade for equity?
- When is cash preferable to equity?
A Different Perspective
Equity may dilute ownership and complicate future profits.
![“To kick things off, [television show host Andy Cohen] asked the last time Winfrey had smoked marijuana. 'Uh ... 1982,' Winfrey replied. 'Let's hang out after the show,' Cohen joked. 'Okay,' Winfrey laughed. 'I hear it's gotten better.'” quote by Oprah Winfrey](https://sms4smile.com/quotes/img-quotes/7b6/oprah-winfrey-186_hanging-out_to-kick-things-off-television-show-host_82087.jpg)
