The Research On Mergers And Aquisition Performance Of The Case Of Letv

With the nation placing more emphases on the development of culture industry,culture industry plays a more important role in national economy.M&A activities in capital market becomes increasingly active.In this wave of M&A of cultural industry,the film industry is a concentration zone.The thesis chose Letv's acquisition of Flower Film and Letv New Media in 2013 as an example,introduces the basic information of these companies and the acquisition process.To evaluate M&A performance,the thesis mainly used event study method and financial index analysis method.As a supplement,four non-financial indicators are selected according to the characteristics of cultural industry mergers and acquisitions.The study found the Letv case has achieved good results in many aspects.In short term,the merger has brought a shareholder wealth increase.In the part of financial performance,the scale of Letv has been expanded,operating revenue results in a growth,operational capacity and growth capability has improved,but the profitability and solvency have declined.Combined with other non-financial performance analysis,the merger meets the company's long-term development needs and the target corporations occupies an important position in long-term strategy.Letv has taken different integration strategy for two subsidiaries.After the acquisition,subsidiaries has brought capital inflows to ease the financial pressure.Letv has realized UV increase as well as user scale growth.There are three problems remained:debt servicing pressure,the risk of losing core competitiveness of the subsidiary and profitability loss.According to the results of the case analysis,Letv should pay attention to the control of expansion speed.Measures should be taken to reduce financial risk caused by debt pressure,to prevent the loss of core competitiveness of subsidiaries and make a balance of the capital investment among different business segments.At present,the enterprises in the cultural industry should consider the strategic development needs and try to combine the mergers and acquisitions with the long-term strategy.Try to realize the synergistic effect through the industrial chain integration.Measures should be take to to prevent the core competitiveness loss of subsidiary.Attention should be paid to the company's cash flow and liabilities to prevent funding strand breaks from excessive M&A.