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I released Westinghouse from my motor royalty
1888 — 1891
Situation
The war of currents between Westinghouse, Edison and Thomson-Houston, followed by the financial panic of 1890 that put Westinghouse Electric under its lenders' control.
Action
In July 1888 my backers negotiated a licence of my polyphase motor and transformer designs to George Westinghouse for $60,000 in cash and stock plus $2.50 per AC horsepower. In 1891 I released the company from that royalty to keep it championing the motor.
Outcome
A business decision that traded future royalty income for keeping my technology alive in the market.
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