The Study Of Motivation And Performance Of Wanda Overseas Acquisition Of Hoyts

Cultural industry has high economic spillover benefits,revenue cycle is short,small environment pollution,the adsorption of employment ability,so governments have given attaches great importance to the development of cultural industry,our government has also introduced a variety of laws and regulations and preferential policies to encourage cultural enterprises bigger and stronger,it is imperative to the business development of cultural industry to overseas markets.Since the formal implementation of the cinema distribution and screening mechanism in December 2001,China’s cinema industry has undergone a decade of rapid change,and the layout of cinemas has penetrated into every corner of large,medium and small cities.Under the environment of a large number of cinemas and fierce competition in the industry,the merger and integration of cinema industry is an inevitable product of the current situation.Wanda Cinema Line Co.,Ltd(hereinafter referred to as “Wanda Cinema”)is subordinate to Wanda group and is the No.1 Cinema Line in Asia.In 2015,Wanda Cinema Line merged with Hoyts Cinema Line in Australia,which was the first overseas acquisition of Wanda Cinema independently.Firstly,this paper introduces the research background,research significance and research purpose of this paper,and reviews,sorts out and summarizes the motivation and performance theories of M&A.Then,it analyzes the development status and trend of the cinema line industry,briefly introduces the operation status of enterprises of both sides of the merger and acquisition,summarizes the motivation of merger and acquisition,and elaborates on the process of merger and acquisition and merger and integration.Then,the event study method is used to analyze the changes in stock prices before and after the merger,and the financial index analysis method is used to explore the profitability,debt paying ability,operation ability and growth ability,so as to judge whether the merger has achieved the purpose of the merger,the expected effect and the impact of the merger on the enterprise.Finally,combined with the status quo of the film and television industry,the successful experience and inspiration of mergers and acquisitions are summarized,hoping to bring inspiration and reference significance to the future cross-border mergers and acquisitions of China’s film and television enterprises,enhance the competitiveness of film and television enterprises,and promote China’s film and television industry to a new level.Based on the above analysis,this paper draws the following conclusions and implications:1.The motivation of Wanda Film’s M&A of Hoyts in Australia is mainly to coordinate resources,expand brand effect and realize the strategy of “globalization” through the synergistic effect and scale effect of M&A under the condition of market competition.2.From the aspect of M&A performance,the short-term market reaction of this M&A activity is positive;the profitability and operation ability of financial performance have been improved,in the year of merger and acquisition,Wanda Film’s assets increased by 13 times,operating income increased by 4 times,and the sales plan was overfulfilled by two times,the management level of current assets and fixed assets is improved,the overall operating condition is improved;and the synergy effect of internal integration and strategic implementation has been achieved.3.The inspiration of this M&A activity is that cross-border M&A should focus on development strategy;Select bona fide merger;Guard against payment risks;Pay attention to the follow-up integration,especially the business integration and cultural integration.