This is a snippet from Breaking Walls Episode 96: Halloween On The Air (1943 - 1953)

___________

One summer day in 1948, Willam S. Paley received a proposal from Lew Wasserman and Taft Shreiber—President and VP of The Music Corporation of America. They asked if CBS would be interested in buying The Amos N’ Andy Show, then airing on NBC.

At the time, U.S. Citizens were taxed 77% of all income over $70,000. However, if the duo behind Amos N’ Andy, Charles Correll and Freeman Gosden incorporated and sold their show to the network, they would be taxed under capital gains laws at 25%.

NBC wouldn’t allow the deal. But William Paley jumped at the chance. Amos n’ Andy moved over on October 10th. Shortly after, Lew Wasserman phoned again. He asked if CBS would be interested in purchasing The Jack Benny Program.

Benny organized his activities into a corporation. Paley and Wasserman negotiated an agreement for CBS to buy it for $2.26 Million.

NBC sent president Niles Trammel to California with orders to keep Benny at NBC. When William Paley heard that Trammel was on his way to California, he called Benny directly to arrange an in-person meeting. Benny invited him to Los Angeles.

Paley and CBS counsel Ralph Colin set up shop at the Beverly Hills Hotel. RCA head David Sarnoff was there as well, to help ensure Niles Trammel would secure the deal.

NBC responded with a major counteroffer. Lew Wasserman intervened. CBS matched the counteroffer, and an impressed Jack Benny signed it. Sponsor American Tobacco was uneasy. Paley convinced them to back the move by offering compensation for every rating point Benny’s show lost.

As all of this was happening, The Jack Benny Program broadcast live on the evening of Sunday, October 31st, 1948.