A Study On The Performance Of Huace Film M&A Kedun Media

Corporate mergers and acquisitions has a long history and already become a very active economic activities.Through the success of previous M & A cases,it can be found that the enterprises improve market share,achieve lower operating costs,operating income and synergies after mergers and acquisitions.In order to improve the competitiveness of enterprises in the market,more and more companies hope to get their aims through mergers and acquisitions.In recent years,China's film and television industry develop rapidly,the number of China's movie box offices rise from 2008 to 43.41 billion yuan in 2015 to 44.469 billion yuan.In 2015,the total output of China's TV series rise up to 400,and the average number of sets has more than 40 sets,which is optimistic.Now,watching TV or watching movies has become a part of daily life of the broad masses of the people.Due to the rapid development of film and television industry,more and more companies achieve resource integration in order to expand the size of the company through mergers and acquisitions.In2015,the number of mergers and acquisitions of cultural media companies is up to 115,the transaction amount up to 5.3 billion US dollars.With the continuous development in China's political and economic fields,the state has promulgated a series of laws and regulations on the development in cultural enterprises,which has guaranteed the development of China's cultural industries.As the strength of the domestic film industry,Huace film similarly chooses to expand market share and enhance the competitiveness of the purpose through mergers and acquisitions.So we consider and analyze the case of Huace film mergers and acquisitions of Kedun media in 2014,focusing on the change of the financial and accounting indicators in the four aspects of the profitability,solvency,operating ability and growth ability of the film and television before and after the merger and acquisition and whether it has achieved the purpose of acquisition,the expected effect and the impact on the enterprise through mergers and acquisitions.These analyzes will give some reference to other enterprises that want to acquire.Through the study of this case,it is found that the performance of financial indicators in the year of M & A was good and obviously higher than that in the past few years.However,the development of financial indicators is not as good as that in the next year.The value of economic added from negative to positive with a good improvement;The mergers and acquisitions expands the market share of the enterprise,prompt the fast development in TV,movies and variety shows,and enhance the core competitiveness of the enterprises.Finally,the paper puts forward the suggestion of M & A through the conclusion of case analysis.Before mergers and acquisitions,the enterprise should select the development strategy for the target business,take into account the risk of M & A activity,and do a good job after the occurrence of adverse events.Mergers and acquisitions can not ignore the integration since successful mergers and acquisitions will have a positive business performance enhancement.