Research On Motives And Performance Of Mergers And Acquisitions Of Bluefocus With High Premium

In recent years,cultural industry in China faces a good period of development under the guidance of national policy.At the same time,with the encouragement policies that aim to create large modern media companies,mergers and acquisitions within the cultural industry is a growing trend.The Bluefocus,a listed media firm which has launched a large-scale M&A operations recently,caused a widespread concerned because of its great amount of Goodwill impairments in 2015.This paper uses this case as background,and try to find the reasons why Bluefocus has conducted a series of M&A with high premium and the performance after the M&A based on the relevant theory and research method of M&A premium and performance.In this paper,I explained the reasons from market level,company level and management behavior level and find that seller's market,the radical development strategy of the company and the management overconfidence have influences on the premium of M&A performed by the Bluefocus.Besides,this paper analyzes the short-term and long-term performance caused by M&A between 2011 and 2015,and find that performance is affected by time and industry.Both of short-term or long-term performance appear to be positive in the earlier M&A actions,while the M&A happened later has shown a negative impact on performance.In addition,crossindustry M&A has a negative impact on corporate performance.Finally,this paper puts forward some suggestions concerning Bluefocus' s M&A.Bluefocus is supposed to improve the internal control system,strengthen the supervision and control of the management behavior.Also,it should hire excellent intermediary agencies which will play a key role with their professional services in M&A activities.Third,Bluefocus should focus on the post-investment management work so that the synergies can affect the performance.