Performance Analysis Of Wanda Film Merger And Acquisition Of Wanda Pictures

The cultural industry has the characteristics of high economic spillover benefits,short income cycles,and small environmental pollution.In order to ensure the vigorous development of the cultural industry,China has successively introduced various laws and regulations and excellent policies to encourage the cultural industry.The film and television industry occupies a dominant position in the cultural industry,and the box office of the film industry has risen sharply in recent years.The profits and development prospects of the theater and film and television industries have attracted more and more enterprises to enter.In order to seek the transformation and upgrading of traditional enterprises,and to explore new profit growth points,it is imperative to transform to emerging industries.In this context,Wanda Films,as a leading company in the domestic cinema industry,completed the acquisition of Wanda Films in 2019.This merger and acquisition completes the shortcomings of Wanda Films in film production and distribution and improves the film and television ecological industry chain.This article selects Wanda Films 'merger and acquisition of Wanda Cinema as the case study object,selects 2016-2019 financial data as the research basis,and uses methods such as event research to explore the mechanism of Wanda Films' perfection of its own industrial chain through mergers and acquisitions.The content of this article mainly includes four parts.The first is the introduction,which mainly introduces the background and significance of the topic,as well as the research method and framework of the thesis.Second,it reviews the relevant literature on the motivation and performance of mergers and acquisitions in the cultural industry;Thirdly,the basic situation of Wanda Film,Wanda Film and Television and the merger and acquisition process are introduced;then,the event research method is used to analyze the stock price changes before and after the merger,and the financial index method is used to analyze the debt repayment ability,profitability,and operating ability of Wanda Movie before and after the merger.Analysis and development capabilities,and draw conclusions.Finally,based on the analysis results,the Wanda Film M & A is summarized and related countermeasures are proposed.This article draws the following conclusions through empirical analysis: The motivation for Wanda Film's acquisition of Wanda Film is to close the film and television ecological chain and improve the process from upstream production and distribution to downstream screening and publicity.In terms of M & A performance,the short-term market response is negative;debt serviceability,profitability,operating ability and development ability have all declined slightly.Wanda Cinema line has not achieved good performance in the merger and acquisition of Wanda Film and Television,and is not favored by the market in the short term.Moreover,the risk of goodwill impairment caused by mergers and acquisitions and the overall film and television industry recession will make it more difficult for Wanda cinemas to recover in the future.The main reasons for Wanda's unsuccessful merger and acquisition of Wanda Film and Television are the inadequate market research before the merger and acquisition,the downturn of the film and television industry,and the lack of attention to the risk of high goodwill.Finally,according to the research results,the following enlightenments are drawn: firstly,the correct development strategy should be formulated and adhered to;secondly,the resource integration after merger should be strengthened;finally,the risks after merger should be paid attention to.