Research On The Performance Of New Classics Media After The Acquisition Of China Literature

Mergers and acquisitions,as a major means of corporate development,can help companies develop rapidly and expand their scale.With the development of the Internet and the continuous updating of science and technology,people’s needs for entertainment and cultural life are constantly changing.The pan-entertainment cultural industry market in my country has gradually emerged,which has had an impact on the traditional business model of cultural media companies.Therefore,in order to ensure that the company itself For the long-term development of the company,a large number of corporate mergers and acquisitions have occurred in recent years,but domestic research on mergers and acquisitions lacks attention to this field.This article focuses on the acquisition of New Classics Media,a traditional online literature company by China Literature,to integrate film and television media companies.Create a case of the IP operation industry chain,explore the motivation and performance of such special mergers and acquisitions,and provide reference suggestions for similar mergers and acquisitions in the future.This article is based on the theory of M&A motivation and performance,using literature induction and case analysis research methods,taking China Literature as the research object,to study the problems and causes of the performance of China Literature’s post-merger.The article first introduces the research background and research significance of this article.It sorts out relevant domestic and foreign literature from three aspects: merger motivation,merger performance and merger performance evaluation methods,and discusses related concepts of mergers and acquisitions,merger performance and evaluation methods,and the motivation theory of mergers It is elaborated.Secondly,it introduces the merger case of China Literature’s acquisition of New Classics Media,including the company profile of both parties to the merger and the introduction of the merger process and methods.The thesis also conducted a detailed study of the motivations of this merger.Then from the financial and non-financial perspectives,it analyzes and evaluates the performance of the Post-merger China Literature,and explores the reasons for the current performance problems.Finally draw the conclusion of this article,and make recommendations accordingly.Through analysis,this paper concludes that after the acquisition of China Literature,its profitability and development capabilities were not as good as expected,and its financial performance was unsatisfactory.In the analysis of non-financial indicators,the effect of the merger did not achieve the objectives of China Literature’s acquisition.In terms of performance in the three years after the merger,China Literature’s merger was not successful.The reason lies in the fact that China Literature overvalued New Classics Media in this acquisition,Xinli’s expected performance commitment has not been reached,and the unfavorable integration of resources between the two parties after the merger.Therefore,when conducting mergers and acquisitions,cultural media companies should focus on promoting the compatibility of the advantages of both parties through integration;understand the risks that are prone to the industry in which cultural media companies are located,comprehensively manage various risks that may occur during mergers and acquisitions,and reduce risk factors after mergers and acquisitions.The occurrence of mergers and acquisitions;be cautious about the phenomenon of high premiums in mergers and acquisitions,choose the correct value evaluation method and broaden the financing channels for mergers and acquisitions.This article hopes to provide some suggestions and enlightenment for other companies’ mergers and acquisitions,especially cultural industry mergers and acquisitions,by analyzing the typical pan-entertainment cultural industry M&A case of China Literature’s acquisition of New Classics Media,which has certain reference significance.