The Performance And Motivation Of Cultural Enterprises Mergers And Acquisitions Game Companies

Since the 21 st century, China’s Internet-related industry is developing rapidly, but the fastest growing market with the greatest potential, undoubtedly the most far-reaching gaming industry. With the popularity of the network and a variety of electronic products, as well as increasing consumers’ fragmentation of time, the game industry’s development potential stand out all the more. However, due to game companies own characteristics, game companies often need a huge upfront capital investment, therefore, in order to seek greater development, more and more game companies have chosen to participate in mergers and acquisitions, triggered a wave of mergers and acquisitions of the gaming industry. In 2013, there were 20 cases market acquisitions in gaming industry in China, involving an amount of up to 20.734 billion Yuan RMB. And in mergers and acquisitions in game industry, cultural enterprises accounted for nearly half of the country. Why cultural enterprises become more involved in mergers and acquisitions in the game? What kind of effect will be produced when merger and acquisition?These issues are worthy of further study.In this paper, based on the theory of mergers and acquisitions, in accordance with current developing situation and characteristics of culture and gaming enterprise, found that the main motivation of our cultural enterprise mergers and acquisitions game companies were: search for new economic growth point, reduce entry barriers of the game industry,share customer resources, optimize business structure, the use of incentives; By conducting research from the perspective of the acquirer of its acquisition effect, find the positive effect of mergers and acquisitions game of cultural enterprises in our country is mainly reflected in the promotion of market value, increase market share, optimize the industrial structure and the allocation of resources, increase the income, adjust the financial leverage, tax planning, the negative effect is significantly enhance the solvency, deterioration of business cost.This paper have chose a very representative of M & A cases in the M & A boom,Zhejiang Daily Media Group Co., Ltd.(Zhejiang Daily Media) acquisition of Hangzhou winger Network Technology Co., Ltd.(winger network),based on the existing motivation and acquisitions effect theory, by analyzing the culture business and gaming business development situation and characteristics, analysis the motivation of cultural enterprisesmergers and acquisitions game company in China, then analyze its merger motive perspective Zhejiang newspaper media, and analysis the M & A effect both from the market and enterprise-level. The study found that the motivation Zhejiang newspaper media merger winger network mainly for: build an integrated media platform, expand value-added services,the optimization and upgrading of industrial structure, integration of customer resources,accurate advertising to further enhance profitability. In terms of the effect of mergers and acquisitions, Zhejiang newspaper media have achieved good market segments effect,expanding the business scale through mergers and acquisitions, company’s stock price have a sharply increase after the merger, industrial structure has been optimized;However, the effect of the enterprise level is more general, a substantial increase in profitability, solvency has increased slightly, but the operating capacity has deteriorated, operating costs rose sharply,and the effect of mergers and acquisitions as negative tax. Overall, Zhejiang newspaper media mergers and acquisitions Winger Network good market effect, the effect of general enterprises.