| Since 2013,a large amount of external capital has poured into China’s film and television industry,and the number of film and television enterprises has increased rapidly.The excessively dispersed market leads to the low profitability of all enterprises.At this time,the pan-entertainment mode is emerging,and the pursuit of IP in the film and television industry tends to be hot.In order to achieve rapid profits,frequent extensive mergers and acquisitions become a shortcut for the expansion of enterprises.In 2016,the capital market gradually became rational,the development of film and television industry stagnated,the audience changed from chasing stars to chasing high-quality content,and the disadvantages of frequent high premium mergers and acquisitions in the early stage began to be exposed.This article through to Huayi Brothers two high premium M&A events of 2015(Dongyang Haohan,Dongyang Meila)the analysis of the motivation of M&A and analyze the high premium and through event study method and analysis of financial index method of the high premium business performance after M&A,thus to Huayi Brothers frequent high premium rationality evaluation of M&A the future of Huayi Brothers business direction and the film and television enterprise mergers and acquisitions to general revelation.The study found that Huayi Brothers,in order to consolidate the dominant position of the film and television industry,vigorously seize quality IP,expand the industrial chain,deeply cultivate the fan economy,and committed to seeking the synergies of mergers and acquisitions.The M&A motivation of this,no doubt,but in the process of mergers and acquisitions,Huayi Brothers high premium caused by high valuation for the target enterprises,the target enterprise high bet commitment is buried under the large hidden trouble at the beginning of mergers and acquisitions,once unable to meet,Huayi Brothers will face a risk of goodwill,adverse impact on the operating performance of enterprises.In addition,Huayi Brothers are all made of cash but once the enterprise into a shortage of funds,high debt,the deterioration of capital structure,financial cost is high,the long-term performance after M&A and disappointing short-term performance,performance gradually decline,in varying degrees all injection Huayi Brothers frequent high premium M&A is not reasonable.In view of the current operating difficulties of Huayi Brothers,this paper puts forward specific Suggestions,hoping that the company can rebuild its main business advantages in 2020 and beyond.Focus on quality and diversified IP instead of blindly chasing stars;Promote the capital drama,accelerate the output of high-quality products in the era of content for the king;At the same time in the capital market rational operation,avoid blind behavior.Under the pressure of tax storm,stricter regulation and platform restriction,Huayi Brothers and other film and television enterprises are facing difficulties in their development.However,the difficulties will eventually pass,and the accelerated reshuffle of the film and television industry is a challenge but also an opportunity for Huayi Brothers.Capital flows have changed,but the effect of capital agglomeration has become more pronounced.In the era when content is king,Huayi Brothers and other film and television enterprises should clarify their advantages and insist on high-quality production,so as to stand firm in the industry and achieve phoenix nirvana. |
