“Risk-Return” Analysis of M&A Logic in Media Market: A Case Study of Game Industry in China

Under the background of new regulatory rules, M&A have gradually become a hot business in the capital market in China. The success of cultural products such as “Black Myth·Wukong”, “The Three-Body Problem” and “Li Ziqi” has triggered a heated discussion on the trend of M&A in the media industry. Taking the game industry as an example, this paper summarizes the systemic risks (Beta) and non-systemic risks (Alpha) in the media market from the perspective of “risk-return” theory, as well as the specific forms of these risks. Explore how to integrate media business through structured investment mode to achieve the balance between capital, art and commercialization, so as to reduce risk probability and achieve excess returns. Finally, based on the research findings, this paper attempts to discuss how the “Internet age” will transition to the “medium age”, the formation of incremental markets in this transition process, and what strategic opportunities will be brought.