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Why strategic thinking is important in business deals

Indeed, 2015 has been the year of mergers and acquisitions. While the dollar value of the transactions has made for intriguing headlines, the actual stories and thinking behind them has not. Nevertheless, the market strategy behind these moves is something that should not be ignored when considering whether to make a new purchase or to join forces with another company.

One example of strategic thinking can be found with the recent deal between HBO and Sesame Workshop, to produce the next five seasons of “Sesame Street” exclusively on HBO and HBO GO. Such a deal may seem counter-intuitive given the success of other shows on streaming network providers that mimic the dramatic and edgy style of HBO’s shows such as Netflix’s “Orange is the New Black” and “House of Cards.”

However, the strategic thinking behind the HBO/Sesame deal is ostensibly that kids are the gateway to their parents’ wallets. By providing content for children to consume, it is more likely than not that parents will stay on the channel to learn about new shows that may suit their interests.

The strategy may be an ages old recipe (e.g. putting adult, tongue-in-cheek jokes in children’s movies), but it is poised to maintain a brand known for innovating programming.

 With that said, strategic thinking also requires careful planning in order to result in a successful business deal. Having such a plan reviewed by experienced business law attorneys is a prudent move that not only sets proper expectations for all parties participating in the deal, it is a worthy investment. 

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