Barriers Part

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Strategic

GAP present in the price quoted by the two parties


Even after creative restructuring of the deal and parties giving up few things which were
easier to give away, a $500,000 price GAP existed
Psychological
Paramount was ready to go to another network in case the deal with NBC fails. NBC was
not sure if they should test this.
Kelsey Grammer wanted to match the record for longest-running TV character James
Arness, thus wanted a 3year pick up period, which was not acceptable by NBC (This
issue was taken up before the negotiation process begin)
Institutional
A failed deal would lead to a bidding war in which all networks vied for each others
programs
Paramount could put their show immediately on CBS in case the deal with NBC failed.
BARRIERS

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