Performance Evaluation of China Literature Limited 'S Acquisition of New Classics Media

Abstract

In 2016, China put forward the concept of "digital creative industry" for the first time, and took it as one of the five pillars of the development of China's strategic emerging industries, marking that China's cultural and creative industry has officially entered the digital era. At the same time, with the upgrading of the consumption mode, the traditional entertainment consumption mode has been unable to meet the needs of consumers, resulting in the ceiling of the traditional culture and entertainment segments in China. Therefore, under the guidance of policies and the promotion of changes in consumption environment, the concept of "new cultural creation" arises. China's entertainment enterprises have carried out merger and acquisition activities, trying to participate in the strategic layout of "new cultural innovation" by expanding the IP industry chain. This paper uses the method of case study to analyze the motivation and economic consequences of Chinese entertainment companies to lay out the "new cultural and creative" strategy. Specifically, this paper uses the event study method and index analysis method to evaluate the long-term and short-term performance of merger and acquisition activities. In addition, this paper discusses the motivation and risks of the merger, summarizes the lessons learned, and tries to provide reference for the cross-industry merger of China's cultural and entertainment enterprises