Diversified M&A Performance Targeting Film And Television Companies

With the development of economy,high and new technology gradually integrated into production,plus forward new concept like “Internet+”,“film-television industry intellectual property+”.At the same time,facing the industry transformation and updating,traditional industry grows slower and slower.Influenced the rule of economy,traditional industry transforms and updates will be processed in the near future.Since 2004,with the positive country policy and demand increase,culture industry has developed faster and faster.Ten years later,it even becomes one of the most popular targets of merge and acquisition.Taking 2014 for example,the number of events which M&A's target is culture industry increased to 247.Among these,there is 55 events of M&A which target is film-television enterprise.Besides,more and more traditional industry began to diversify in merge and acquisition,such as ROYAL DAIRY which main business is milk try to merge film-television enterprise.In the previous study of mergers and acquisitions,has quite a few involving enterprise research of diversified M&A,M&A's motivation and performance.But in many studies at China and abroad is less involved in merging target is film-television enterprise.Therefore,this article will take ROYAL DAIRY merge YUJIA MEDIA for example to analyze the character of film-television industry,then analyze deeply about the reason and performance for M&A with film-television enterprises.This article will use the case study method,the comparative analysis method,the event research method and the financial analysis method.From the investor point of view,event research method will be used like CAR method.In the other hand,from the manager's point of view,the financial indicators of long-term performance analysis.Based on the data after M&A behavior,it can be seen from the performance indicators that short-term CAR method shows that investors are neutral and even passive.Besides,financial analysis method reveals M&A behavior just for better performance of YUJIA MEDIA merging into consolidated statements.In general,this M&A case is unsuccessful.In view of the above,this article will point out the risk which ROYAL's Group facing and give relevant countermeasures and suggestions to whom plans to diversify M&A,as well as for the proposed ROYAL's Group.