The Research On The Performance Of Mergers And Acquisitions By Zhejiang Huace Film&TV Co.,Ltd. From The Perspective Of Industrial Value Chain

During the period of "the 13th Five-Year Plan",as many cultural industry support policies introduced,film and television industry as an important part of cultural industry,has developed rapidly with large amounts of capital invested.The value of m&a in cultural media industry reached $425.9.1 billion in 2016,showing a strong development momentum.How to promote the smooth realization of merger and acquisition of the company and realize the enterprise's acquisition target and improve the performance is a major challenge for many film and television enterprises.Zhejiang Huace Film&Tv Co.,Ltd.,as China's ''first stock in TV series",has been gradually developed into a comprehensive media entertainment group from the foundation.The company listed in 2010,and in recent years,it has become one of the most active companies in the film and television capital market,because of the strategy of building a diversified content ecosystem through mergers and acquisitions.How the value chain changed after a series of merger and acquisition completed?Is the m&a performance different in the different stages of value chain extension?What's the difference?These problems will be analyzed in this paper.This paper takes the mergers and acquisitions events announced since the listing of Huace film as the object of study,Firstly,comb the process of enterprise value chain extension and its merger and acquisition;And then analyze the m&a and its performance under the different extension stages of value chain;Finally,put forward specific suggestions.The enterprise value chain extension is divided into two stages:the integration stage of "production + distribution + release" and the diversification stage based on the industrial value chain.M&a performance is evaluated in the short and long term.The results show that the value chain of Huace film has been extended from middle to upstream and then to downstream.The performance of M&A is different in the different stage of the extension of the value chain.in the " production + distribution + release" stage of integration,mergers and acquisitions short-term performance improved significantly,the shareholders received positive wealth effects,but long-term m&a performance is falling;in the diversification stage based on the industrial value chain,short-term performance in mergers and acquisitions has been significantly reduced and the long-term performance has been reduced steadily.Possible reasons are with the extension of value chain,enterprise scale was expanded and capital chain extended continuously,diversification makes its original business profitability weakened.The research of this paper has certain reference significance to the layout of the value chain of film and television enterprises,the formulation of M&A strategy and the improvement of M&A performance.