Construction and Application of Internet Enterprises’ Diversification Strategic Risk Model Taking LeTV as an Example

Diversification strategy has always been the focus of enterprises. Many enterprises have changed their models and adopted diversified management methods to improve their market competitiveness. However, not all companies can bring profit growth. For companies, a diversification strategy is like a double-edged sword. If it is not used properly, it will also lead the company into a financial crisis. This paper takes LeTV Group as the research object to discuss the financial risks and consequences of corporate diversification strategies and uses LeTV’s financial data to analyze the economic consequences of LeTV’s diversification strategy financial risks. The study finds that due to the mismatch of capital allocation, limited profitability, and insufficient funds as support, the financial risks of LeTV have increased. In response to a series of problems, this paper proposes measures to solve the financial risk control of LeTV’s diversification strategy. It is realistic and necessary to study the diversification financial risks and consequences of LeTV Group, hoping to provide a reference for the diversification strategy layout of other companies.