A Case Study On The Synergy Effect Of China Literature Group’s Merger With Xinli Media

The "18th National Congress of the Communist Party of China" clearly pointed out that my country should vigorously develop and assist strategic emerging enterprises in the future.After that,relevant policies have been issued to provide continuous support and strive to achieve the substitution effect of various traditional enterprises with low production capacity.These include cultural transformation and cultural restructuring.With the development of the times,the Internet and various scientific and technological means are constantly updated,the information that can be obtained from it is gradually enriched,the entertainment industry is gradually emerging,and the competition in the cultural media industry is becoming more and more fierce.In order to enhance its core competitiveness,Many companies choose the way of mergers and acquisitions,which can not only make the company expand and develop the fastest,but also realize the integration of resources to the greatest extent.Whether mergers and acquisitions achieve synergy is an important criterion for judging the effect of mergers and acquisitions,but so far,my country has not studied synergy for a long time,and some mergers and acquisitions did not produce the established synergy in the end,so how to measure the synergy after mergers and acquisitions What factors will affect the generation of synerrgies is the focus of this study.This paper selects the typical case of China Literature Group’s acquisition of Xinli Media for research,and explores the synergies generated by its mergers and acquisitions.It is hoped that it will be a useful tool for the company or the industry in the future.Advising on M＆A activities.Based on the existing relevant theories,this paper uses literature research,case study and quantitative research methods to analyze and study the merger case.Measure synergies.This paper briefly summarizes the basic information of both parties and the process of the merger,and elaborates on the motives of China Literature Group’s mergers and acquisitions and the motives of Xinli Media’s mergers and acquisitions.A comprehensive analysis of the synergies arising from mergers and acquisitions is made from the three aspects of finance,operation and management.In terms of financial synergy,since China Literature Group did not conduct a comprehensive investigation and systematic analysis of Xinli Media before the merger,investors have Mergers and acquisitions are not optimistic,causing the stock price to fall,but the solvency reflects the financial synergy effect of the merger;in terms of operational synergy,after the completion of the merger and acquisition of China Literature Group,the original income structure has been changed,and the profitability of the company has been changed.be promoted.In terms of management synergy,the talents of both companies in the merger and acquisition are brought together to enhance management capabilities and improve management efficiency.Through the analysis of cases,this paper summarizes the problems that enterprises should pay attention to in the formation of synergies in mergers and acquisitions,and provides reference for future mergers and acquisitions of other enterprises in the industry...