A Study On The Motive And Performance Of Mergers And Acquisitions By LETV

Today,China's economy is in a transition period.Under the new normal,supply-side reform and upgrading of industrial structure are necessary to stabilize the economy.This is closely related to the frequent occurrence of mergers and acquisitions(M&A)in China's listed companies,especially in the manufacturing and information technology industry,such as high-tech industry-based GEM market.After the acquisition of the company to expand production operations at the same time,it is also crucial to adjust the resources of the acquisition and to adjust its business strategy according to the market.Based on the theory of M&A,this paper summarizes the domestic and foreign literature on M&A motivation and M&A performance combined with Internet industry characteristics,analysis of the motive and performance of M&A by LETV.First of all,according to the background of LETV mergers and market conditions from the Angle of the internal and external two analyses the motivation of m&a,internal cause among them has: improve the industrial chain,strengthening core competitiveness,ease of capital pressure,lower financing costs,play synergy,implement strategic cooperation,external causes are: growth stress and Competitor push;Then,analyzes the short-term and long-term performance of the merger in terms of both the event research method and the financial index method,and concluded the LETV M&A brought improvements on its short-term performance,and long-term performance has declined.Then make recommendations for the existing problems,such as: strengthen the management of accounts receivable,using preferred stock financing,optimizing the governance structure,change the pricing of the terminal,focus on content product development;Finally,Draw the conclusion of the study,M&A has brought some desired results for LETV,but comprehensive view,radical expansion strategy does not fully consider the wishes of investors and the company's affordability,made the company into a capital chain of the plight,then put forward four enlightenment: attention to M&A follow-up integration work,choosing M & A targets to meet strategic needs,select the appropriate payment method according to the situation,improve competitive advantage through innovation.Through the above analysis,hope to bring enlightenment and reference meaning for LETV and other types of enterprises in the future,and promote the development of Internet industry.