Research On The Motivation And Merformance Of Sanqi Interactive Entertainment’s Continuous M&A

Since entering the information age,the forms of entertainment tend to be diversified,no longer adhere to the traditional material culture entertainment,more and more people choose virtual games as a form of spiritual culture entertainment,which pushes our game market volume to expand rapidly,the game industry has been rapidly developed.In recent years,Chinese game industry has gradually changed from rapid development stage to high-quality development stage,and research and development of high-quality competitive products has become the primary strategic goal of major manufacturers.In addition,mobile games have gradually replaced client games to dominate the market.A large number of listed game companies have chosen intraindustry mergers and acquisitions to acquire mobile game-related R&D technologies,customers,game products and other resources in a short time,update the industrial chain,improve game products and enhance market competitiveness.Moreover,M&A events in such an industry often show a kind of "continuity".In other words,a listed game company acquired several companies in the same industry in a short period of time.However,blindly carrying out such a series of mergers and acquisitions may not bring the expected benefits to the game company,but will hinder the development of the company due to the lack of integration of resources and poor synergies.Therefore,it is necessary to specifically study the motivation of successive mergers and acquisitions in the game industry and their impact on corporate performance,so as to help other game companies make reasonable merger and acquisition planning and income evaluation,so as to ensure the sustainable and stable development of the game industry.To this end,this paper selects Panax Notoginseng Entertainment,a game company that has experienced multiple mergers and acquisitions in recent years in order to improve its operation and management status,as the research object to conduct a case study and analyze the motivation,process and results of its mergers and acquisitions.First of all,this paper reviews the current research status of domestic and foreign scholars on M&A,and refines the concepts and theories related to this case study.Secondly,based on the general situation of Panax Notoginseng Entertainment,the author analyzes the relevant background of mergers and acquisitions,and combines the specific process of Panax Notoginseng Entertainment’s continuous mergers and acquisitions to explore the motivation of its continuous mergers and acquisitions from five perspectives: catering to the market development trend,obtaining new performance growth points,realizing coordinated development of industrial chain,optimizing internal management and improving corporate social reputation.Thirdly,the influence mechanism of M&A on performance is analyzed,and then the performance of successive M&A of Panax Notoginseng Mutual Entertainment is evaluated from the perspectives of market performance,financial performance,management performance and social responsibility performance.First,we explored the market effect of the three mergers and acquisitions before and after the occurrence of the event study.The results showed that the market reaction of the first and third mergers and acquisitions was more positive,while most investors had mixed opinions on the development prospects of the second merger and acquisitions,but the overall performance was positive.Second,the financial index method is used to analyze the change of financial performance before and after the successive mergers and acquisitions of Pannoginseng Interactive Entertainment.It is found that its profitability and operating capacity have been improved after the successive mergers and acquisitions,but there is still room for optimization.It can continue to improve its profitability by controlling operating costs and selling expenses,and improve its operating capacity by improving the use efficiency of its own funds.At the same time,it is found that its growth ability after successive mergers and acquisitions is not satisfactory,and it needs to actively seek new development paths of main business in the future.Thirdly,the management performance evaluation index system was constructed from five perspectives:strategic management,human resources,basic management,industry influence and development innovation.The entropy method was used to study the changes of management performance of Panax Notoginseng Mutual Entertainment before and after successive mergers and acquisitions.The results showed that the management performance score of Panax Notoginseng Mutual Entertainment was improved.Fourthly,by referring to the ESG evaluation system,indicators are selected from the perspective of social contribution to evaluate the changes in the social responsibility performance of Panax Notoginseng Interactive Entertainment through quantitative and qualitative analysis methods,and it is concluded that the company’s social responsibility performance has been improved.The research shows that as a whole,the continuous mergers and acquisitions of Panax Notoginseng Entertainment have a positive impact on the company.Although Mokun Technology,one of the targets of the first M&A,brought goodwill impairment problem for the latter,which affected part of the annual performance evaluation,in the subsequent M&A activities,the latter paid more attention to resource integration and risk control and successfully recovered the risks and losses caused by goodwill impairment,basically realizing the motivation of successive M&A.Finally,based on the accumulated experience and problems found in the case analysis,this paper puts forward three inspirations and suggestions for similar M&A activities of enterprises in the same industry: first,clear strategic objectives before M&A;Second,carefully evaluate the value of the target company;Third,focus on resource integration after the merger.