Research On The Motivation And Performance Of Huace Film And Television’s Merger Of Clayton Media

With the accelerated pace of social development,rapid momentum of economic development,rapid progress in science and technology,people’s material level has been greatly improved,and spiritual and cultural needs have become more and more vigorous.Therefore,in recent years,the market has promoted the vigorous development of the cultural industry,including some new film and television companies.Not only that,the government also attaches more importance to the development of cultural industry.In order to support the cultural industry,it has formulated some special policies and regulations.It is also for the national cultural industry to catch up with the international level.This is an opportunity,but also a challenge,because invisibly let the competition between domestic cultural enterprises become increasingly fierce.As we all know,the film and television industry,an important part of the cultural industry chain,has been greatly developed in recent years.Many high-quality films and TV plays make the audience enjoy talking about them.Therefore,some strong enterprises have long-term strategic objectives and want to acquire more high-quality resources and occupy more markets through mergers and acquisitions.However,some small and medium-sized enterprises have to make use of their own advantages,recognize the situation early,and find a suitable backing as soon as possible to cope with the increasingly fierce competition.Therefore,in recent years,mergers and acquisitions in the film and television industry have been increasing,with the strong eating of the weak,the big fish eating the small fish,accelerating the speed of integration of the industry.This paper makes a case study of a classic merger and acquisition in the film and television industry in 2014.Taking the merger and acquisition of Kerton Media as the breakthrough point,it analyses the motivation of merger and acquisition and the performance of merger and acquisition.It is hoped that the conclusion can provide some meaningful reference suggestions for the companies that want to merge and acquisition in the film and television industry in the future.The main research methods of this paper are literature research and case study,which comprehensively analyze the motivation and performance of this M&A.Finally,this paper finds that the acquisition of Kerton Media by Huatze Film and Television enhances the win-win situation for shareholders and companies.It not only brings considerable profits to shareholders,but also enhances the company’s market influence and achieves synergy effect.It gradually transforms from a leading entertainment media company in China to a leading comprehensive entertainment media group in the world,which is closer to its strategic objectives.Yes,we have basically achieved ourprevious expectations.Finally,through the conclusion of this analysis,this paper puts forward some valuable suggestions on the merger and acquisition of film and television companies.That is,before M&A,film and television companies should measure their own situation and shortcomings,clarify the motivation of M&A,and then select complementary M&A objects.After M&A,they should pay attention to controlling M&A premium and strengthen the integration of both sides in all aspects.