Analysis On Motivation And Performance Of Sieemon M&A Greentown Media

Cultural and media industry is a kind of classical light assets industry and its growth ability and profitability are much higher than other industries.Because of the higher living standards,people demand more cultural products than before.Meanwhile,as cultural products are able to improve the quality of citizens,they get support of national policies.Cultural and media corporates attracts many investors because of this.From 2013,M&A cases of cultural and media industry have the same characteristic “high merge premium”.This paper adopts the method of case study and select the case Sieemon merges Greentown media to analysis.This paper analyses what’s the purpose of this case,whether the merge add value to parent-company,whether the merge improve market value of the company,and then analyses the rationality of this case.First,the paper of the theory,including types of M&A,the performance of M&A and how to evaluate M&A.The motivation of M&A includes synergy,corporate strategy,industry advantage and so on.Performance evaluation methods of M&A,including event research,economic value added,the analysis of financial data.The conclusion of this paper is that the acquisition improves the market value of Sieemon.Through the analysis of this acquisition,we know that this M&A improves Sieemon’s profitability and growth ability.The analysis of economic value added,the acquisition enhance Sieeomon’s ability to create value.The results of three assessment methods are all confirm this acquisition.This paper analysis the rationality of high merge premium in Sieemon merges Greentown media case,offer reference for the study of cultural media industry merge cases and offer reference for investors.