Research On The Motivation And Performance Of Wanda Cinema's High Premium Acquisition Of Muwei Fashion

Merger and acquisition is one of the effective ways to achieve rapid development and expansion of enterprises.In recent years,with the rise of merger wave,merger premium has been at a high level and shows a fast rising trend,which gradually becomes a "new normal" in mergers and reorganizations of listed companies.As an important part of China's cultural industry,the film industry is booming under the background of favorable policies and economic and social progress,and the phenomenon of high premium frequently occurs in its m&a activities.However,the result of merger and acquisition is not necessarily successful,high premium also means high risk,through in-depth analysis of the motivation and performance of enterprises' m&a with high premium,we can better understand the m&a premium and provide references for enterprises' economic activities.As the leader of China's film industry,Wanda Cinema's merger and acquisition activities have strong representativeness and reference value.In 2015,Wanda Cinema acquired Muwei Fashion at a premium rate of more than 29 times,which aroused wide attention in the capital market.In this merger and acquisition,Wanda Cinema adapts to changes in the market environment and future development trend,actively promotes strategic transformation and upgrading,and hopes to acquire high-quality business resources through the merger and acquisition of Muwei Fashion,so as to improve the layout of the industrial chain and realize the purpose of diversified operation.After the merger,Wanda Cinema has enhanced its market power and brand value,basically realizing the original intention of the merger,and Muwei Fashion has also achieved a good performance commitment,which further indicates that the premium of the merger is reasonable to some extent.However,it should also be noted that mergers and acquisitions have had a negative impact on the solvency and operational capacity of enterprises,and there is still room for improvement in strengthening mergers and acquisitions and integration.Based on this specific case,this paper conducts an in-depth analysis of the motivation of mergers and acquisitions in combination with the characteristics of the industry,and evaluates the performance of mergers and acquisitions with financial and non-financial performance analysis methods,then inspiration and suggestions are obtained from the selection of merger objects,determination of merger premium and post-merger integration,etc.,in the hope of providing impetus for related enterprises to improve competitiveness,realize strategic transformation and diversified development through merger and acquisition.