国际经济与贸易学院知识库

The cultural industry is a new industry that has developed in the context of a globalised consumer society. It is widely regarded as the "golden industry" or "sunrise industry" of the global economic integration in the 21st century. At present, Chinas cul tural and related industries have gradually grown into a new growth point in Chinas macroeconomic development. As Chinas cultural industry grows stronger and bigger, it is

also important for it to "go global". Wanda Group is a typical representative of Chinas earliest overseas acquisitions in the cultural industry. Originally from the real estate industry, Wanda has combined cultural resources with commercial real estate, and cultural resources with commercial real estate, relying on real estate resources to build supporting studios and expand upstream and downstream industry chains in the film and television industry with its channel advantages. Since the acquisition of AMC Cinemas in 2012, Wanda has completed nearly ten consecutive overseas acquisitions and has become the worlds largest cinema operator.

This paper focuses on the performance of the three overseas M&As made by Wanda Group between 2016 and 2017. Based on a systematic review of existing theories on the motivation and performance of cross-border M&A and the relevant research findings of domestic and international scholars, it is established that the performance of Wanda Groups three overseas M&As is assessed mainly based on the event study method and the financial indicator method. By discussing the short-term and long-term performance of these three M&As, it is concluded that these three overseas M&As did bring about a certain degree of abnormal short-term stock returns and improved long-term development indicators for Wanda Groups Wanda Film and AMC Entertainment, and also achieved some of the objectives of the M&A strategic plan. However, these three successive overseas acquisitions also reflect a number of problems in corporate decision making. Overly aggressive capital expenditure and the speed of M&A, among other things, may have laid down significant risk factors for the future operations of the company.

The novelty of this paper is that the long-term performance of M&A

is assessed as a process covering both pre- and post-merger phases, starting with a summary of the motives and objectives of the three successive overseas M&As in terms of the macro-strategic layout of the company and the expected M&A effects of the host company. After discussing the changes in key financial indicators over the long term, the results of the M&A are then examined in relation to the motives and objectives of the M&A, and the success of the M&A is discussed in a comprehensive manner. Finally, based on the problems reflected in Wanda Groups three successive overseas M&As, such as the increased financial pressure caused by aggressive M&As, the paper proposes feasible suggestions such as not to go too fast in the pace of M&As, to use capital prudently and to manage liquidity well, in the hope that they will be of reference to the future overseas M&A expansion plans of private enterprises in China.