Video website is one of the fast growing Internet industry in recent years. Although the network video industry maintains a steady market expansion, long-term loss issues of the major online video sites remain unresolved. In order to achieve economies of scale and relieve stress, merger and acquisition (M&A) events between the video sites occur frequently. Can video sites get rid of loss-making dilemma through the merger integration has been a hot topic in academia. Taking Letv's acquisition of Flowers Film and Letv New Media as an example, this paper applied event and accounting study method to research the effects of the M&A event on Letv's performance from the short-term and long-term perspectives. And this paper explored the implications of M&A events for the future development of the network video industry. The results showed that, in the short term, the acquisition can create positive value for the stock holders. And in the medium to long term, the acquisition will enable Letv keep growing. In the new media age, “content is king”. Creating the “platform & content & terminal & application” of the industrial ecological chain will be more beneficial to the future development of China's online video industry.