Analysis On The Behavior And Performance Of Ciwen Media’s High-premium M&A

With the continuous development of China’s industrial economy,in order to achieve rapid transformation,most enterprises consider asset reorganization through Merger and Acquisition.Cultural media is a typical asset-light industry,and M&A often presents a high premium.In order to effectively prevent the risk of high premium M&A,it is very crucial to study the asset pricing,motivation,impact analysis and performance of M&A.Taking Ciwen media’s high premium M&A as a case study,this paper describes the concepts and theoretical foundations related to high premium M&A after fully combing the domestic and foreign scholars on the motivation,influence and performance of high premium M&A.Firstly,through the case analysis,this paper analyzes the basic situation and process of M&A,and evaluates the asset pricing of the target enterprise.Secondly,this paper analyzes the motivation of this high premium M&A and its impact on goodwill and equity pledge.Then,in order to comprehensively evaluate the performance of this high-premium M&A,the paper selects the applicable evaluation methods and indicators based on the actual development of the enterprise,and conducts multi-dimensional analysis from the market effect,financial and non-financial effect,synergistic effect and comprehensive effect.Through the calculation and analysis of measurement indicators,it is found that high premium M&A can bring positive market effect,financial effect and synergy effect,and achieve the strategic development goal of the enterprise.In terms of the combined effect,EVA rises and the company also completed its cumulative performance commitments.In summary,the high premium acquisition can bring a positive value effect.However,the paper also points out the need to be wary of goodwill impairment and equity pledge risks resulting from high premium M&A,which also have a negative impact on the performance of the enterprise.Finally,this paper puts forward suggestions from five aspects:valuation mechanism,performance commitment,M&A motivation,enterprise integration and supervision mechanism,aiming to provide reference for the implementation of high premium M&A in China’s cultural media industry.