LeTv's Financial Risk Analysis Based On Investment And Financing Perspective

The Internet industry began in the 1990 s,and over time,the Internet has penetrated into all areas of national life.As one of the main applications of the Internet,network video applications have become more and more popular in people's lives.Because of its convenience and selectivity,network video not only provides viewers with more and free choices,but also provides advertisers with precise marketing channels,which promotes the vigorous development of the network video industry.However,the network video industry has the characteristics of single profit model and low profitability.Most companies want to use strategic transformation to seek profit growth,which is bound to be more or less financial risk in the process.This paper selects LeTV as the case study object and analyzes it according to the specific situation of the company.As the first IPO listed online video company,LeTV has reached a market value of 150 billion yuan,becoming one of the most dazzling enterprises in the industry.As the pioneer of diversified expansion of the network video industry,the development of LeTV has been widely concerned in the industry.However,although LeTV has gradually realized all-round expansion in just a few years,some of its non-listed systems have presented a layer of financial pressure,which has led to a serious financial crisis for listed companies.At the beginning of the establishment of LeTV,the financial situation was good,the profit model was clear,and the financial risk level was low;In the rapid development stage of the enterprise,due to the rapid expansion of the expansion and limited financing capacity,the investment and financing imbalances and financial risks have gradually increased,which has caused LeTV to fall into the vortex of financial crisis;After the financial crisis,LeTV actively adjusted its corporate strategy and entered a strategic contraction period.As the nonlisting system is in financial distress,it affects the credit system of listed companies,which in turn leads to a decrease in the business of listed companies and further increases financial risks.This paper hopes to provide reference for other network video companies by analyzing the investment and financing behaviors and financial risks of LeTV's various development stages.Network video enterprises should rationally treat the problem of strategic transformation.On the basis of creating revenue,always pay attention to controlling the financial risks of enterprises and choose a reasonable development mode.