The Motivation And Performance Analysis Of Phoenix Media's Continuous M&A

Cultural media industry is not only a key component of the socialist economy with Chinese characteristics,but also experienced reform and opening-up,and has become a very fast-growing sunrise industry in China.It has not only been highly valued by the central government,but also by local governments at all levels.Under this background,policies conducive to the development of cultural media industry are wave after wave.Announcement,the development of Internet economy is also more and more prosperous,which not only provides opportunities for the development of cultural media industry,but also brings challenges for the development of cultural media industry.Therefore,mergers and acquisitions,as a hot spot of industry development,have attracted more and more attention.More and more cultural media companies have joined the ranks of mergers and acquisitions,making mergers and acquisitions and reorganizations gradually become an important means of expanding the enterprise scale of cultural media industry.In order to achieve better development of itself,major cross-regional and cross-industry mergers and acquisitions often occur.The scale of propaganda mergers and acquisitions in the cultural media industry reached 3 7.287 billion US dollars in 2015,which has become a record high.In 2016,the situation is better,but in the case of rational policy tightening,the number of M&As has not declined,and the steady upward trend remains unchanged.Continuous mergers and acquisitions have become a common phenomenon in the upsurge of mergers and acquisitions in the cultural media industry.However,the increase in the number of mergers and acquisitions does not mean the improvement of the quality of mergers and acquisitions in the cultural media industry.Whether the performance of enterprises can be improved through continuous mergers and acquisitions,thus enabling enterprises to achieve considerable development,this is still a need for us to further study and explore.Through the analysis of the merger and acquisition cases of publishing enterprises and the research of successive mergers and acquisitions of scholars at home and abroad this evening,using the short-term wealth effect analysis method,long-term financial index analysis method and EVA analysis method,through horizontal and vertical multi-dimensional comparative analysis,this paper explores the performance of successive mergers and acquisitions of Phoenix Media,with a view to evaluating the profitability of successive mergers and acquisitions from various perspective Whether corporate performance has been improved in terms of solvency and operating capacity.The results show that the comprehensive strength and financial benefits of Phoenix Media have indeed improved after continuous M&A.The strategy of continuous M&A has achieved obvious results and brought positive performance.Moreover,the market reaction and long-term performance evaluation indicators of Phoenix Media show a stable and slightly increasing trend with the increase of the number of mergers and acquisitions.After a specific analysis of the performance of Phoenix Media's successive mergers and acquisitions,we draw a conclusion:Firstly,the scale of assets has been expanded and the operating capacity has been increased;secondly,the financial returns are higher and the capital structure is good;thirdly,the profitability has been improved and the quality of profits has been high.On this basis,the author puts forward the following suggestions to Phoenix Media:first,to strengthen synergy and seek long-term development;second,to face up to the financial risks of enterprises and rationalize the capital structure in order to achieve long-term and healthy development of enterprises;third,to vigorously develop the main business and enhance the quality of profits.It is hoped that the research and analysis of Phoenix Media's continuous M&A can be used for reference by similar M&A activities in related industries.