Study On The Motivation And Performance Of China Literature’s Acquisition Of New Classics Media

Mergers and acquisitions are one of the most important ways for a company’s growth strategy,and it is also the fastest way for enterprises to grow.With the rise of technology and the development of the Internet,People’s lives are changing and traditional industries have also been hit.Driven by national policies,traditional cultural enterprises have laid out new media,and realized capital layout through external mergers and acquisitions.In recent years,China’s cultural industry mergers and acquisitions market is extremely hot.But,the domestic research lacks due attention to the cultural industry merger and acquisition field at present.This paper focuses on the case of the acquisition of New Classics Media by China Literature,provides some enlightenment for the future related to mergers and acquisitions through the analysis of m&a motivation and performance issues.In this paper,based on the theory of mergers and acquisitions motivation and m&a performance,in combing the relevant theories of mergers and acquisitions and mergers and acquisitions performance evaluation method,this paper introduces the reading text group merger and acquisition of new media the case,after knowing case for China Literature merger and acquisition of New Classics Media’s motivation and performance,then analyzed.This part analyzes the reason of mergers and acquisitions.There are mainly four factors:based on the capital to promote integration,explore the potential value of products and extend the value of the IP chain,looking for new profit growth point and improving the structure of the income and expand the adaptation-based value chain for obtaining the adaptation-based control.Chapter five evaluates m&a performance from three aspects: First,using event study method to evaluate the short-term market performance;Second,using the method of financial indicators evaluation of financial performance.Thirdly,non-financial performance is evaluated from the aspects of product liquidity,copyright operating income and strategic objectives.The last chapter is the conclusion and revelation,for this acquisition,the author draws inspiration from the case study.The result of case analysis shows that: after the occurrence of mergers and acquisitions,China Literature’s short-term market performance is poor and the market reaction is not active;In the long-term financial performance,profitability and development capacity change is more obvious,m&a effect good;In non-financial indicators analysis,m&a effect basic achieving the target of mergers and acquisitions.In general,China Literature’s merger and acquisition is successful.This paper hope to provide reference for other enterprise m&a through the analysis of China Literature merger and acquisition of New Classics Media’s motivation and performance.