Film And Television Media Company Intellectual Property Merger And Acquisition Behavior Research

Since 2013,mergers and acquisitions(hereinafter referred to as M&A)in film and television industry enjoy great prosperity and the rise of pan-entertainment mode enables great increase of intellectual property’s price in the industry.Actors,novels,cartoons and games have become the primary targets considered in M&A of the industry and intellectual property M&A come into being under this circumstance.This essay explores the rationality of target company valuation in Huayi Brothers’ M&A and the cause and post-merger performance by digging into Huayi’s M&A of Dongyanghaohan,Dongyangmeila and Yingxionghuyu and therefore come up with general revelation of M&A in film and television industry.The main cause for film and television company’s intellectual property M&A lies in seizing high-quality IP resources and building pan-entertainment industry chain to achieve high-quality IP multi-window cash realization and beautify financial statement.In the process of valuation,there is short of sufficient supervision of valuation adjustment mechanism execution,sufficient justification for valuation adjustment amount and sufficient assurance of revenue after valuation adjustment period,which makes valuation slightly rash.All-in-cash M&A payment method caused great increase of liabilities and financial expense after completion of M&A,aggravation of capital structure and gliding of overall financial performance.Similarly,Huayi Brother’s series M&A activities haven’t generated good market performance and no increase of short-term wealth effect.Only by controlling actor’s payback proportion,normalizing M&A valuation,enhancing supervision over valuation adjustment execution and selecting the right M&A approach,can we ensure stable and healthy development of film and television industry.