Research On Financial Motivation And Performance Of M&A

The cultural media industry started late in China.In the recent years,it has developed rapidly because of the policy drive.The demand of enterprises for expending their own scale,improving market share,enhancing core competitiveness and realizing diversified development is increasingly more intense.M&A fever was set off through the industry in 2013.This paper selects the case of Huayi Brothers merger Yinhan Tech,which has the leading status in cultural media industry.The research of this case can provide experience and reference for the capital operation and cross-border M&A of the cultural media enterprises in the Internet age,so it has a strong application value.In this paper,I collected and summarized domestic and foreign scholars' research literature on M&A motivation and M&A performance,combined with the characteristics of cultural media industry and online game industry,as well as the background of the Internet Era,to analyze the motivation and performance of the merger and acquisition case of Huayi Brothers and Yinhan Tech.This paper mainly analyzes the M&A from the perspective of strategic planning,synergistic effect and capital operation.Combined with the theoretical research and motivation analysis,we find that Huayi Brothers improved the comprehensive layout and diversified development through the M&A.And at the same time,in the short term,M&A brought an increase in debt service and operational efficiency for the enterprise.However,because of the consumption of the demographic dividend and the periodic fluctuation of the media industry,the competitiveness of the enterprise has not been improved,and in the long run,the synergy effect of the merger has not been realized.