Enterprise Diversification M&A Performance Analysis

There are five M&A wave mixing in the history of west countries and the third wave ofconglomerate M&A is the most significant. However, with the development of economy, mostcompanies developed toward refocusing strategy in the world. Then looking at our country,diversified acquisitions began to appear in the1950s and until1990s reach a climax, which iscontrary to the international background of the refocusing strategy. Although there are manysuccessful stories, such as Haier, TCL, it is undeniable that the pursuit of diversificationbrought blind diversification, and ultimately collapse.Whether it is the only way for adiversified enterprise to grow bigger and stronger or it will disperse the core competitivenessof enterprises, it is worthy of deep research and deep thinking.With the reach of the digital age, the Internet applications quickly swept the world,forcing the country to transit the traditional development model of publishing industry, thisarticle will be a typical example of the traditional publishing industry It will enter the area ofdigital industry by M&A. This article will focus on the problem of whether it makes effectabout this M&A and hoping to provide reference for the implementation of businessdiversification strategy and other publishing companies as well as other industries. At first, aseries of theories are explained and the M&A case are introduced in detail. There are thirteenfinancial indexes including profitability capacity, operational capacity, debt paying ability.Two main methods are comparative analysis and empirical analysis. From June30,2012toJune30,2014, by studying the financial data of Zhejiang newspaper, the author finds after theM&A, the whole operating condition has improved a lot by2013. While the performancedescends in2014. The conclusion is that this M&A does not make continual effect onZhejiang newspaper.The innovation of this article is that it takes the newest data of diversified M&A toconduct research. It chooses two game platforms as typical examples and takes method ofcomparative analysis and empirical analysis.