Research On The M&A Performance Of News And Publishing Listed Companies

Mobile Internet and other forms of new media industry have been developed rapidly in China since 2013,which has brought huge impact on the business model of traditional news and publishing industry.Meanwhile,however,it has also promoted the industry to upgrade its business pattern more actively and has been integrated in a diverse way.More specifically,the listed companies in this industry have made full use of the convenient and efficient annexation and reorganization mechanism in capital market so as to integrate the resources from the upstream and downstream rapidly.They have also managed to create diversified development paths of different themes,media,culture and online games,just to name a few.Industry transition and upgrading were accompanied by a wave of annexation and reorganization in the A-share market in 2013,which also led to a round of mergers and acquisitions by the large-scale listed companies in the news and publishing industry.After the M&A upsurge,what is the business performance of the acquired party(or the target company)? Whether the integration of the listed companies meet the initial expectation after the M&A? How to quantify and evaluate the M&A performance of the industry in the past? The current research takes the listed companies mentioned in a sub-section of "CSRC culture,sports & entertainment industry" of China Securities Regulatory Commission as the object of research.As a result,until the end of 2019,24 A-share listed companies in this sector are selected in the research.This thesis focuses on the investment and merger cases disclosed by these companies in the sector between 2013 and 2019.First and foremost,the current study has analyzed the basic situation of the listed news and publishing companies and the general circumstance of merger and acquisition cases since 2013.This thesis has also analyzed the characteristics of M&A from the perspective of target companies.Meanwhile,it has investigated the industrial M&A performance in terms of profit commitment plus realization of the target company,and goodwill formed by the M&A and its subsequent impairment.Next,in line with the analysis of the overall situation of M&A,the current investigation took COL group merger Morning Tec case to analyze the M&A performance of the industry.Concerning the case performance analysis,the relevant indicators which were applicable for evaluating the M&A performance of news and publishing industry were adopted,and the researcher established M&A performance evaluation model,and conducted empirical analysis on the performance of the relevant M&A cases by using event research method,EVA value method,financial analysis method and Tobin Q value method.In accordance with the calculation and analysis of the above-mentioned index model,it is concluded that the merger of Morning Tec by COL group in 2018 not only failed to bring positive performance to COL group,it also substantially weakened the overall value of COL group.Through the investigation on performance of M&A cases of the listed news and publishing companies,it is hoped to provide reference for both the news and publishing companies’ M&A in the future and supply help to the capital market investors.