Study On M&A Cases Of Film And Television Companies

In recent years,with the fast development of the domestic film and television industry,M&A activities have remained quite active in relevant fields.Capital has been constantly penetrating into all the links of the whole film and television industry,because of this,the influence of the capital on the artistic creation process and balance between the commercial interest and artistic pursuit has become the main bone of contention in the field.Among these M&A cases,some domestic listed film and television companies chose shell companies owned by stars as the acquiring target.As acquisition cases of shell companies owned by stars are quite different from the traditional M&A cases in terms of operation period,historical financial performance and transaction patterns,such cases have attracted widespread attention and controversy.Guided by Michael Porter's Five Forces Model theory,based on the five-force analysis of the film and television industry,a thorough analysis has been conducted on the acquisition cases of star-owned shell companies.From the perspective of the Five Forces Model,such acquisition transaction could increase the acquiring companies,binding power of Stars and,furthermore,improve the acquiring companies' bargaining power towards customers and suppliers and the comparative advantages among competitors.In addition,such acquisition transaction could achieve significant economic benefit for the shareholders of both the buyers and sellers.However,acquiring star-owned shell companies could also cause severe problems such as over commercialization,valuation bubble of acquiring listed companies,and sharp fluctuation of financial performance and market value.According to the above study,although the acquisition of star-owned companies could enhance the acquirers' competing power in the industry from the short-term and five-force perspective,the disadvantages of such acquisitions outweigh their advantages from the perspective of the protection of public investors,national policy and the sustainable development of the industry.In conclusion,the acquisition of star-owned companies should be controlled and regulated on the aspects of system building of both the capital market and the film and television industry.