The Leadership Letter

Real correspondence from the people running real companies — and what it reveals about leadership.

When Your Partner Might Undercut Your Price, Pay Differently

The real negotiation isn't about money — it's about locking in the business model before you write any check.

Jim Kolotouros (Jun 13, 2019): "I am assembling the structure now that I believe can align us for several years. I spoke with Finance today on the construct and I have asked Chris and Anna to engage with Competition Counsel to stress-test its requirements and assumptions. It does not involve revenue share on search and/or Play. It does involve guarantees and bonuses in exchange for device volume commitments."

Jamie Rosenberg replied: "I'd assume that a pre-condition for any sort of rev share arrangement with Samsung is that we'd achieve structural alignment on business model. In other words, if we couldn't use rev share to secure confidence that they won't drive down to 5%, then we wouldn't do it."

Hiroshi Lockheimer added: "A quick thought: if we're willing to share Play revenue with carriers as part of the recent RSA discussions, shouldn't we be willing to do the same with Samsung on at least the same terms? I think the difference is if Samsung are going to take the money we pay them and use it towards driving the 30% down to say, 5%."

Jim Kolotouros closed with: "And just to plant a flag in the sand: we will get a deal done. Purnima, Jamie and Paul's time will be well spent assembling a Plan B. But not getting a deal done means an 'NI' in my next Perf cycle."

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Court Exhibit
In re Google Play Store Antitrust Litigation (Epic v. Google)
3:21-md-02981 (CAND), Doc. 886-60, filed 2023-12-21
June 19, 2019
Public domain
View the primary source →