Research On Cross-border M&A Performance Of B-raymedia

In recent years, under the background of economic structure transformation in China, the central industry development policy began to lean to cultural industry. Encouraging M&A among cultural industry and strengthening the cultural industry has become a development trend. Under the guidance of the central policy, M&A integrations and capital operations between major cultural enterprises have been more and more frequent, which leads our cultural resources into a period with huge adjustment and integration. Quite a few of M&A events in cultural industry in recent years have the feature of cross-border mergers and acquisitions. Boundaries of industry and region are more and more broken by cross-border mergers and acquisitions. Comprehensive cultural industry groups with large scale are formed. However, cross-border M&A can bring many difficulties and risks such in strategic specified, target selection and integration. Whether or not has the wave of cross-border mergers and acquisitions truly brought increase of financial performance? Based on this issue, the paper continuously tracks the cross-industry and cross-regional M&A activities of b-raymedia, which is a representative company in Chinese newspaper industry, and through analyzing characteristics and motivations of its M&A events, gives a comprehensive evaluation of M&A performance, which has a guiding significance to cross-border mergers and acquisitions in cultural industry.Cross-border mergers and acquisitions have a variety of forms, such as cross-industry and cross-regional M&A. In the cross-industry M&A case that b-raymedia takeover Chengdu dream factory, the motivation includes entering into a new media industry quickly, adjusting economic structure, persuing economic benefits and based on the purpose of win-win. In the cross-regional M&A case that b-raymedia takeover Hainan b-raysanle, the driven reason includes development strategy and resource advantages, so that the firm can enter into a new market quickly. Two types of cross border motivation emphasis differently. The difference appears in following different development strategy and having different internal and external environment. But both the two types are in order to achieve the company’s development strategy and complementary advantages, and to create more value for the firm.According to the results of evaluation, both cross-industry merger and cross-regional merger of b-raymedia has similar performance. Short-term wealth effect in capital market is obvious, while financial performance is not ideal. But the main reason affacts the cross-industry M&A performance is low management technology level, while for cross-region M&A is scale. To this, this article suggested that b-raymedia strengthens strategic synergy between the two sides, attaches great importance to the integration after mergers and acquisitions to achieve good results. To sum up, cross-border mergers and acquisitions in cultural industry should follow three rules:specify strategic objectives, select correct targets and pay attention to the merger integration.Through studying the M&A case, this paper summarizes the successful experience and the insufficiency of the mergers, which provides significant guidance to the development of M&A in cultural industry of our country in the future. Crossover is the direction of the development of China’s cultural industry, and is increasingly showing new features. That requires cultural enterprises make good use of merger strategy, strengthen merger integration, so that to achieve a better performance and development.