Study On Risk Guard Of Merger And Acquisition Of China Literature And New Classics Media

With the development of the 'Internet+' trend,the integration of the Internet and traditional industries has become faster and faster,and the market set off a wave of mergers and acquisitions.In the integration of the Internet information industry and the cultural industry,‘cultural Inter Protocol's an important opportunity in the market.The trend of cross-border integration of traditional media and new media is becoming more and more obvious.Under the guidance of capital,technology and innovation,it breaks the original industrial boundaries of the market,integrates superior resources in the upstream and downstream to search for synergies.In recent years,the cultural industry market for mergers and acquisitions has been very hot in China,but it lacks due attention in the current domestic research on the cultural industry Merger and Acquisition field.In the actual Merger and Acquisition process,because of the changes in the market environment,information asymmetry and high payment consideration,the success rate of merger and acquisition is low.Attaching importance to the risks in corporate mergers and acquisitions to analyse and prevent is of great significance to the smooth progress of mergers and acquisitions.This article focuses on the case of China Literature's acquisition of New Classics Media,an online literature company integrating the industry chain of film and television companies,and explores the motivation and performance of such special mergers and acquisitions,hoping to provide references for similar corporate mergers and acquisitions in the future.This article takes the risks and prevention in the acquisition of New Classics Media by Reading Group as the research object,based on the information asymmetry theory and the synergy theory,using the literature research method,case analysis method,comparative analysis methods and event research method.First,this essay introduces the situation of the China Literature and New Classics Media and the motivation of the acquisition.China Literature is an Internet company mainly engaged in the cultivation of digital reading and literary IP.Through the merger and acquisition,it hopes to improve its income structure and shape the advantages of the cultural IP industry chain.New Classics Media is mainly engaged in the production and operation of film and television dramas.Through this merger and acquisition.New Classics Media hopes to reduce financial pressure and improve the efficiency of listing to enhance the competitiveness of enterprises in the industry.Then,this paper provides an overview and analysis of the merger and acquisition plan.By comparing the financial data,market response of Reading Group and the completion of the 'Gambling Agreement' by New Classics Media in the acquisition,it was found that the results of the merger and acquisition not only meet expectations,but also the Reading Group experienced a decline in profits and a decline in price.Then,the merger and acquisition is divided into the first,middle and last three periods for analysis.The study found that Reading Group should engage a third-party independent agency before the merger to conduct detailed investigations of New Classics Media's operating conditions,industry,financial and non-financial conditions,make analysis and assessments,and determine a reasonable purchase price.In the middle of the merger,China Literature should continue to pay attention to the operation of New Classics Media,supplement the merger contract and the gambling agreement.After the completion of the merger,China Literature should establish a reasonable and effective corporate integration system,strengthen corporate culture integration,pay close attention to New Classics Media's role in the pan-entertainment value chain,and improve IP operation and distribution capabilities.In addition,we must continue to pay attention to the changes in the market environment.Under the influence of the novel corona virus,the market environment changes,a risk response team should be established immediately to carefully analyze the current situation of the company,and make risk response adjustments.