Motivation And Financial Performance Analysis Of Wanda Film’s Cross-border Acquisition Of Legendary Pictures

In the age of economic globalization,cross-border mergers and acquisitions have become an important means of foreign direct investment.Through cross-border mergers and acquisitions,companies can acquire more resources and expand their market share.Cross-border m＆a activity of Chinese companies is growing,which has attracted extensive attention from the academic circle.In recent years,cross-border MERGERS and acquisitions have been increasing in China,but not all the declared m＆a enterprises can succeed.According to the report "Welcome the New Era of Chinese Enterprises’ Overseas M＆A",in the past two decades,the average success rate of cross-border mergers and acquisitions of Chinese enterprises is 62%,and there are still many failed cases of cross-border M＆A.Therefore,it is of great significance to study the motivation and effect of cross-border M＆A cases.One of the core issues of cross-border M＆A is that it can create profits or value for both enterprises through M＆A.Consequently,the study and analysis of the motivation and performance of cross-border M＆A will provide valuable reference for Chinese enterprises’ cross-border M＆A activities.Taking Wanda Film’s acquisition of Legendary Pictures as an example,this paper conducts an in-depth study on the cross-border m＆a performance of cultural enterprises through the comprehensive application of various methods.Firstly,through literature analysis,the relevant theories of domestic and foreign scholars on the motivation and performance of cross-border M＆A are sorted out to provide theoretical support for the research and analysis of this paper.Then,it summarizes the industry background,introduces the acquired enterprises and the acquired enterprises in detail,and describes the process of Wanda Film’s cross-border acquisition of Legendary Film combined with the internal and external motivations of the acquisition.Analysis of short-term market reaction by Selective Event Research method,and the traditional financial indicators are used to analyze whether the cross-border M＆A achieves synergistic effect.EVA evaluation method is used to analyze the long-term performance of the M＆A enterprise.In summary,the acquisition case of the legendary painting of Wanda film is completed through the process of analysis and summarizes the experience,lessons and information of the case so that other companies in the same industry can conduct cross-border mergers and acquisitions.Through research and analysis,it is found that the cross-border m＆a has a negative impact on the short-term market reaction and long-term performance of Wanda films,and the synergy effect in the m＆a motivation has not been well realized.By summing up the lessons,we get the following enlightenment:In order to generate certain economic benefits through cross-border M＆A,enterprises need to make full preparations,carefully select target enterprises and formulate scientific M＆A strategies;We will broaden financing channels,optimize financing structure and determine the optimal payment method;Integrate superior resources to achieve synergistic effect;In addition,we should pay attention to the integration of enterprises after mergers and acquisitions and reasonably avoid risks.