Research On The Performance Of M&A In The Film And Television Media Industry

The competition in the media industry tends to be white hot.It is a routine operation to expand market share and improve performance through mergers and acquisitions,but it is also accompanied by the risks that the expected effect cannot be achieved after mergers and acquisitions,and even the failure of mergers and acquisitions leads to losses.The financial performance after mergers and acquisitions is full of uncertainty.Wanda film,as a leading enterprise in the industry,mergers and acquisitions of Wanda film and television is the classic case of vertical mergers and acquisitions with the largest amount.This paper will analyze its financial performance after mergers and acquisitions.First of all,it uses the literature research method to sort out the relevant basic concepts,relevant theories and documents,and determine the research direction and content of this paper;Secondly,it introduces the basic situation and operation of both parties to the merger and acquisition,the merger and acquisition process and the merger and acquisition results of this case,and analyzes the motivation of Wanda Film’s merger and acquisition of Wanda Film from the perspectives of financial situation,industrial chain extension,cost control and industry status;Finally,the paper analyzes the performance of Wanda Film’s acquisition of Wanda Film from multiple perspectives using four methods,namely,event study method,Du Pont analysis model,non-financial indicators and EVA model,and puts forward research implications on this basis.Research conclusion: Wanda Film finally acquired Wanda Film with 10.524 billion yuan.The motives for the acquisition include optimizing the business model,finding new performance growth points,extending the IP value chain,creating an IP ecosystem,reducing operating costs,and consolidating the leading position in the industry.The motives for the acquisition of Wanda Film are to ease the financial pressure and improve operating efficiency.Financial performance evaluation: after the acquisition of Wanda Film and Television,the negative impact on the growth performance,debt repayment performance,profit performance and operation performance of Wanda Film’s asset size and net profit size is more obvious.At the same time,for Wanda Film,the industry leader,only some indicators are better than the overall level of the industry,which also reflects that its financial performance is not optimistic;After considering the cost of capital from the perspective of EVA,this merger and acquisition has reduced the EVA value of Wanda Film in the long term.In general,the acquisition of Wanda Film and Television has a negative impact on Wanda Film’s financial performance in the long term("drag" effect).Non-financial performance evaluation: the event study method shows that this merger and acquisition has reduced the return on share price of Wanda Film,the analysis of stock price fluctuation shows that the stock price has a downward trend and further consolidated its leading position in the industry.In general,the acquisition of Wanda Film and Television has improved the industry status of Wanda Film in the long term,the share price of Wanda Film is declining in the long term,and its share price yield is declining in the short term.Among the four motives of Wanda Film’s merger and acquisition,only one had been realized,and there are no synergistic effect.The study believes that Wanda Film’s merger and acquisition of Wanda Film and Television has not been successful.The implications of this study are as follows: first,sign necessary gambling agreements;second,focus on goodwill valuation.