Research On Financial Risks Of Chinese Online M&A Chenzhike

Under the two-wheel drive effect of "culture + technology",in order to increase market share and shape their own competitive advantages,cultural media companies have undoubtedly become the first choice for companies to complete their expansion.In view of the outstanding performance of the digital cultural industry represented by games in recent years,and considerable profits,the popularity of game companies in the selection of M&A targets is also increasing day by day.As one of the pioneers of digital publishing in China,Chinese Online has been at the forefront of the industry in terms of pan-entertainment strategic layout planning.In order to integrate IP resources and promote corporate development,in 2017,Chinese Online began to take an 80%stake in Chenzhike.Of M&A activities and completed the merger in April of the following year.However,as a kind of investment activity,mergers and acquisitions are accompanied by various risks at the same time,which are related to the success or failure of mergers and acquisitions activities.Therefore,paying attention to risk control is particularly important for the smooth implementation and integration of mergers and acquisitions.This article first uses the literature induction method to summarize and summarize the literature on the motivations of mergers and acquisitions and related financial risks,which provides a theoretical basis for the research on financial risks of Chinese online mergers and acquisitions.Subsequently,the relevant situation of Chinese Online and Chenzhike will be introduced.Through the analysis of the merger process and the analysis of the motivation,the financial analysis method is used to analyze the results of the merger of Chinese Online,and the flow chart is drawn to identify the financial risks in the merger process.When Chinese Online evaluated Chenzhike,it was too optimistic about its future development,resulting in a high premium;in terms of financing and payment,the choice of a mixed payment method of equity + cash has eased the financial pressure to a certain extent,but there is an original big The phenomenon of shareholder equity dilution and short-term debt repayment pressure caused by cash payments;at the same time,Chinese Online’s poor integration effect on Chenzhike in the post-merger integration stage has increased risks.However,for the financial problems that occurred after the merger,the response measures taken by Chinese Online were not in place,and the effect was not satisfactory.Finally,it puts forward relevant management enlightenments for the financial risks in the process of M&A,hoping to provide some reference for future mergers and acquisitions of cultural media companies.