Research On Risk And Prevention Of Merger And Acquisition Of China Literature And New Classics Media

In recent years,with the diversified development of China's financing channels,the efficient financing method of gambling agreement is favored by many enterprises in the investment field.Merger and Acquisition,reorganization and other activities are important ways for enterprises to expand scale and find new profit growth points.In recent years,with the diversified development of China's investment and financing,the bet agreement is often used as a means of " self-insurance" because of its own advantages,and is widely used in enterprise mergers and acquisitions.The gambling agreement is a valuation adjustment mechanism for future uncertain matters,which can effectively alleviate the valuation differences between the two parties,improve the efficiency of Merger and Acquisition,reduce the risk of integration failure,and jointly motivate the management of the acquired party,so as to ensure the successful conclusion of the merger and acquisition transaction to a certain extent.However,the empirical study found that the signing of the gambling agreement will make the Merger and Acquisition premium higher.With the Merger and Acquisition of gambling becoming more and more popular,the risk of gambling is gradually revealed.In recent years,China's film and television industry has set off an upsurge of gambling mergers and acquisitions,but there are few successful cases of gambling.It is not uncommon for enterprises to fall into crisis due to unfinished performance gambling.After China Literature acquired New Classics Media in 2018,New Classics Media failed to complete its performance target for two consecutive years.At the end of the third year of gambling,Reading revised its agreement with New Classics Media.This is also from another perspective.It proved that the original gambling agreement was insufficient,making the merger and acquisition of the two parties full of risks.Based on this,this article first sorts out the existing literature and theories,selects the matter of signing the gambling agreement in the acquisition of New Classics Media by China Literature as a case,analyzes the specific implementation of the gambling association,and analyzes the signing of the gambling agreement from the perspective of the merger and acquisition parties.Motivation of the agreement;using the process analysis method,from the three stages before the signing of the gambling agreement,during the performance,and after the revision,the risks faced by China Literature's gambling acquisition of New Classics Media are divided into valuation risk and performance clause design risk,Stock price fluctuation risk,management risk,integration risk and goodwill impairment risk;finally,provide suggestions for avoiding risks and optimizing the design of the terms of the gambling agreement.This article provides experience and enlightenment for other companies in the industry to conduct gambling mergers and acquisitions to achieve "win-win" by studying the case of China Literature 's acquisition of New Classics Media.It has important practical significance for related enterprises in the cultural industry to increase the success rate of gambling and promote industrial development.