Analysis Of The Motivation And Economic Consequences Of High-Monetary Mergers And Acquisitions Of Film And Television Companies

In recent years,the M&A behavior of the star capital in the film and television industry has aroused people's attention.Many listed companies have acquired or tried to acquire some companies controlled by famous movie stars.And this merger is usually accompanied by high valuations and high premiums.This paper uses the case analysis method to study the behavior of Huayi Brothers' three high-priced mergers and acquisitions of star capital,and study the motives of high-value mergers and acquisitions and the economic consequences.We hope to provide a theoretical reference for similar behaviors in the market.This paper analyzes the reasons for the high premium in the process of M&A star capital in film and television companies from the perspectives of corporate characteristics,management perspective,performance commitment and market background,and also calculates the economic consequences after the merger.This paper based on Huayi Brothers,and found that:(1)Film companies have high valuations and high premiums in the process of acquiring star capital;(2)High-priced M&A star capital can enhance the company's film and television resources and expand its business chain.On the one hand,the high premium value of star capital cannot be effectively measured by existing value assessment methods,and the high quality of film and television resources is concentrated,resulting in the management of listed companies will increase the premium for self-interested motives.On the other hand,the general rise in the market M&A transaction premium has also pushed listed companies to pay a higher price to obtain star capital;(3)After the high premium merger,the company's market performance and financial performance are poor,and it does not achieve the planned M&A effect.This paper found that enterprises should pay attention to the merger of M&A activities by improving the star capital value assessment mechanism,strengthening the binding force of performance commitments,strengthening the qualifications of the target enterprises,and combining the regulatory policies to supervise the valuation premium of M&A.The M&A premium is controlled within a reasonable range to manage the risk of similar actions.