Undersea cable partnerships, the price of inaction and when to negotiate equity
IN PARTNERSHIP WITH BE IN MOTION
Some exciting news, the Partnership+ podcast is now The Partnership Playbook. Why the evolution? Find our here!
And welcome to Partnership Wednesday! Here are 3 ideas from me and 1 question for you to consider this week to create partnerships you never thought possible.
3 IDEAS FROM ME
I.
In 2016 Google and Facebook partnered with Pacific Light Data Communications to build a 12,800 km subsea cable linking Los Angeles to Hong Kong. The goal? Faster, direct trans-Pacific data flow to power cloud and AI. But geopolitics led the U.S. to block the Hong Kong route, forcing a pivot. The cable was rerouted to Taiwan and the Philippines.
Key Lesson: In partnerships, shared intent isn’t enough. External forces—regulations, politics, market shifts—can force a rethink. The best partnerships adapt and keep moving forward.
II.
You can fix mistakes. You can’t fix missed opportunities. The biggest risk in partnerships is doing nothing. Contemplate the price you pay for inaction.
III.
What’s the best way to think about equity when it comes to a partnership where the outcome is unknown? I was asked this question from the crowd this week. Here’s my answer:
The best time to negotiate equity is when the outcome is unknown.
Strong partnerships bet on the unknown—together.
Most wait until the outcome is clear before deciding how to split the rewards and that’s a mistake.
Here’s a better approach:
• When the outcome is unclear, both partners invest 50%.
• That investment secures 50% of the upside—whatever it turns out to be.
Why does this work?
• It ensures equal risk, equal reward.
• It prevents messy renegotiations when success is obvious.
• It forces alignment from day one—because both sides have skin in the game.
Partnerships built on shared uncertainty create stronger long-term trust.
That’s why the best partners will invest before knowing the outcome.
1 QUESTION FOR YOU
What partnership would you like to close in the next 30 days?
PARTNERSHIP PLAYBOOK MOMENT
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Until next Wednesday,
Phil Hayes-St Clair - Partnership Expert & Coach
When you're ready, there are three ways I can help you:
1. Partnership Essentials: A self-paced, practical online course for entrepreneurs and small business owners. In just 30 days, you'll build a partnership operating system that turns conversations into contracts.
2. Partnership Lab: Coaching tailored for marketing or sales leaders ready to drive rapid growth. My promise: I'll help you close 3 game-changing partnerships in 90 days.
3. Performance Partnerships: A coaching program designed for organisations aiming for sustainable, meaningful growth. The goal: Achieve double-digit growth through strategic partnerships in 12 months—without overwhelming your team.
Looking for something different? Send me an email.
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