On The Performance Of Continuous M&A In Film And Television Industry

With the development of the economy and the improvement of people's material life quality,the cultural media industry has been in a prosperous period in recent years.At the same time,China has also introduced a number of favorable policies,which encourages capital to flow into the cultural media industry and vigorously supported cultural media industry.Therefore,the cultural media industry,especially the film and television culture industry,has set off a boom in investment and mergers and acquisitions.Negative problems such as the sky-high price,two contracts and the evasion of huge taxes have also come one after another.As a result,the film and television culture industry once entered terrible state.In order to return the capital market to rationality,the regulatory authorities tightened the policy and raised the failure rate of restructuring of film and television enterprises.This paper takes case analysis as the research method,and takes Great Wall Television Ltd.,which has 23 M&A activities for four consecutive years,as the research object.This paper analyzes its continuous M&A performance,and explores whether the high-frequency M&A behavior brings great value to the enterprise.Is there a potential risk? The paper is aim to provide reference for other enterprises in the same industry to choose the appropriate M&A strategy in the future and carry out M&A activities more smoothly.It may promote the prosperity and development of the film and television culture industry.This paper starts from the definition,motivation and performance of continuous mergers and acquisitions,and summarizes the research conclusions of many scholars at home and abroad,and reviews three theoretical foundations of continuous mergers and acquisitions: M&A efficiency theory,market power theory,diversification theory.In addition,three main methods for continuous M&A performance evaluation are summarized: event research method,financial index analysis method and case study method.Then,it introduces the background of M&A in the film and television culture industry.In the early stage,from 2010 to 2013,the M&A environment was optimized,and the enthusiasm for M&A was high.In the mid-term,from 2014 to 2016,a large influx of capital promoted the concentration of the industry.From 2017 to now,the supervision became stricter,and the market slowly returned to rationality.In this context,the M&A process of the company was presented,and according to the annual report,three motivations for continuous M&A were obtained.First,extend the industrial chain to integrate resources;second,recruit talents to improve team capabilities;third,reduce existing risks and find new profit points.The paper uses the event research method to evaluate the short-term performance of the company,it can be seen that the short-term performance in the early stage was good,but with increasing activities,the completed M&A transactions have not brought positive effects to shareholders in the short term.The financial indicators analysis method is used to evaluate its long-term performance,it found that its debt risk and operational risk are relatively large,but its profitability and growth ability are good.Compared with the competitor,the profitability of Real Entertainment needs to be further improved.Finally,it concludes that the main risks of the continuous M&A,the risk of goodwill impairment,the operational risk and the operational risk.In this regard,four suggestions are proposed: in the future,the price should be reasonably set up to avoid high goodwill;the current financial pressure can be alleviated by selling some assets or adopting strategic cooperation;the company should play a synergistic effect and strengthen inventory management capabilities;it should also adhere to content-based and create IP of high-quality.