Performance Study On Acquisition Premium Of 6 Rooms By Songcheng Performance

The popularity of the Internet and mobile Internet has gradually overturned the traditional industry.Many traditional industries tend to merge with the Internet to find new space for development.The rise of the “shut-in” culture trend has led to the emergence of the Internet art performance platform,which presents a good momentum of development.Songcheng Performance Development Co.,Ltd is an industry of organic integration between culture and tourism,and the industry has always had high expectations for it.The government encourages advantageous tourism enterprises to implement trans-regional,trans-industrial and cross-ownership mergers and acquisitions in order to create industrial groups and industrial alliance of the trans-boundary integration.Therefore,Songcheng Performance Development Co.,Ltd will also try to seize the opportunity given by the age,develop the online and offline art performance,have strategic layout of Internet art performance industry and make it a O2O(online and offline)interactive entertainment ecological circle with creativity as the core competitiveness.This paper selects the case of acquisition of Beijing 6 Rooms Co.,Ltd(short for 6 Rooms)by Songcheng Performance Development Co.,Ltd(short for Songcheng Performance,stock code 300144)in 2015.This acquisition is a strategic decision for tourism cultural performing arts company listed on GEM to seek diversified development.It is also a typical case of high premium acquisition in domestic.Songcheng Performance finally paid counter-performance of RMB 2,602,000,000 and got all the stock rights of 6 Rooms with a 6800% premium rate.This paper first analyzes the causes of acquisition premium from the perspective of acquisition process and motivation.Secondly,this paper analyzes the impact of acquisition activity on the long and short term performance of the listed company through the event study and research method of financial index respectively and the impact of acquisition premium on acquisition performance.Finally,it is found that it has not achieved the expected economic results after the acquisition of 6 Rooms by Songcheng Performance.The high premium has failed to bring high performance,and the high premium has inhibited the synergy effect.Due to the information asymmetry and managers' eagerness for quick results,the listed companies have a false estimate of the real value of the target company so that they can not effectively cope with the changes in the long-term market environment.The devaluation risk of super high goodwill arising from acquisition will bring incalculable losses to enterprises.