Research On Motivation And Performance Of Traditional Media Enterprise M&A Internet Enterprise

In recent years,China's cultural media industry is in a crucial period of major readjustment,great development and prosperity.The government has issued a number of incentive policies that have provided historic opportunities for cultural media enterprises to achieve a comprehensive strategic transformation.At the present,the core competitiveness of the traditional media industry that relies on the traditional business and the physical channel has weakened year by year,and the growth of main business has become weak,but with the popularization of the Internet and the gradual maturation of digital technologies,the constant update of media methods and changes in consumer behavior,the traditional media industry are in need of transformation and upgrading in urgently.Faced with such a severe situation,it is imperative for traditional media companies to find new breakthroughs,not to be marginalized by technology,and to create new profit growth points.Therefor,under the catalysis of the policy dividend and the opportunities of the transformation of the Internet strategies,the traditional media enterprises have set off a wave of mergers and acquisitions Internet companies.As one of the first listed state-owned cultural and media enterprises,Chinese media has strong capabilities in the traditional media.In January 2015,the Chinese media successfully entered the Internet industry and overseas markets through the acquisition of a 100% stake in the Internet company Elex,and promoted the strategic transformation of the enterprise's new media.The merger has a certain impact in the industry.This article introduces background mainly from China's actively promoting the "Internet plus" strategic,and then discusses that the implementation of the Internet mergers and acquisitions have a great significance for the future development of traditional enterprises.It also summarizes the research findings of domestic and foreign scholars on the motivation and performance of mergers and acquisitions.Then the article summarizes the related theories.It points out that the motivation of traditional media enterprises to merge Internet companies,the methods of performance evaluation,the factors that influence the achievement of M&A performance,and the basic theories of mergers and acquisitions.With the help of the above existing theories,combined with the future development strategy of Chinese media and the case of Elex's Internet industry,the article has conducted a more detailed analysis of the case of Chinese media acquisition of Elex.Through in-depth analysis,we can understand that the main motivation for Chinese media mergers and acquisitions is to implement the “Internet+” strategy,and to promote the upgrading of traditional businesses,and to give full play to the synergies and utilize the overseas background of Elex to open up the international market.By comparing the performance before and after the M&A events in 2015,I found that M&A has a positive impact on the performance of Chinese media.After M&A of the Chinese media,the performance achieved at the business level was mainly the optimization of the industrial structure,the expansion of market share,and the gradual entry into the internet internationalization platform,giving full play to the operational synergy and management synergies,which are in line with the focus of the strategic transformation of the Chinese media.As far as the operation level is concerned,financial indicators are mainly used for analysis.From the perspective of changes in indicators,the operating capacity of Chinese media has declined slightly,but profitability,growth capacity,and debt repayment ability have all increased significantly.It can be seen that financial synergies has also achieved good results.The performance achieved at the capital market level is mainly the stock price trend is good,the excess cumulative rate of return is significantly positive,the total market value and economic added value has been rising.At the same time through the strategic integration analysis after the merge can be seen in the long-term development of improvements and efforts on related indicators,and it brings positive performance impact.In the last,the article mainly expounds the concrete manifestation of the success of Chinese media M&A and the enlightenment to the traditional media enterprises in the acquisition of Internet companies.In the era of "Internet +",traditional media enterprises should make M&A decision timely and choose the M&A object which is in line with the traditional media enterprise's strategy of future transformation and development,and then through cautious investigation,feasibility analysis is conducted according to the actual situation of the company itself,and it is determined whether the target company is suitable for mergers and acquisitions.After the completion of the merger,combined with the company's own characteristics of their own resources for effective integration,both sides of M&A should have in-depth integration of various resources,including strategies,talents,and technologies,then mergers and acquisitions can achieve good performance.