Strategic Adjustment And M&A Performance Based On The Consolidation Of Shanghai Oriental Pearl Media Co.,Ltd And Bestv

M & A activity is an effective way to obtain resources,expand the scale and improve the core competitiveness of enterprises.However,many studies have shown that,due to various reasons,most enterprises mergers and acquisitions actually can not achieve the desired results.More than 80% of the merger did not reach the target.the failure rate of mergers and acquisitions is high.One of the important factors leading to the failure of M & A is the neglect of strategic integration and strategic integration.The results of the strategy consulting firms Bain consulting show that in the global M & a failure cases,80% of the reasons for the failure directly or indirectly from the integration of mergers and acquisitions.It can be seen that the strategic integration after M & A plays an important role in achieving the goal of M & A.The reform of state-owned enterprises has been in the central position in the economic reform in China.In recent years,M&A of State-owned enterprise has been more and more frequent.Government has comprehensively deepened the reform of SOEs in 2014 which is the first year.In this context,in order to integrate resources and build the platform to create new profit growth point,Bestv conducted a major asset restructuring.September 17,2014,Bestv proposed merger and absorption of Shanghai Oriental Pearl Media Co.,Ltd.Shanghai Oriental Pearl Media Co.,Ltd finally exited the stock market in May 5,2015.Since then,the merger is basically completed.After the merger,the company made twice strategic adjustment.They put forward the strategy of "Internet media ecosystem" and "entertainment +" strategy respectively,following with corresponding strategic adjustment of the business segments.After the merger of the company,the community has great expectations for the strategic planning and future development.However,the actual performance of mergers and acquisitions does not reach expectations.So far,the company's share price fell,far more than the market.Relevant earnings indicators and its dominant business are underperforming.Based on the research results that improper integration of strategy after the merger is the main reason for the majority of mergers and acquisitions' failure,firstly,this paper analyzes the Bestv overall strategic adjustment and performance of M&A.Secondly,this paper analyses the strategic adjustment of segments and the strategic adjustment effect on the performance of M&A.Then find out that the acquisition performance is adversely affected by strategic adjustment in this case.Finally discussed the potential problem of strategy adjustment and put forward the enlightenment.Therefore,this paper is significant.