The impact of mergers & acquisitions on acquiring company’s performance: a case study of Disney

Abstract

A value-adding M&A benefits the acquiring company. The purpose of this paper is to study the impact of 21st Century Fox Acquisition on the performance of the Walt Disney Company. Since this acquisition is meaningful activity for Disney, the study concludes that Disney’s performance will be positively affected after acquisition. This activity brings a great profit to acquiring company and increases the wealth of shareholders. The financial statement analysis and t-test are used to evaluate the change of company’s performance. The official financial reports from the third quarter in 2018 to the fourth quarter in 2019 are used. The stock prices are collected during the period involved acquisition process, including early information release. Based on the graph illustration and data calculation, the results of this study will contribute to the future prediction of Disney. And the study of these two huge companies merging is of a great significance in the research of mergers and acquisitions in the entertainment market.