The Analysis Of M&A Of Publishing Businsses

With the stepwise establishment of market economy system, the publishing industry in China, featured by a strong feature of ideology, starts its industrialization process. Besides, China's entry into WTO brought about changes in market environment. To cater to market economy and challenges from post-WTO era, it is compulsory that industry and product structures be modified, market order be further standardized, hence to improve the overall competitiveness of the country. Enterprise Mergers&Acquisitions, as an important means of resource allocation in market economy, is destined to exercise its due influence during the reallocation process of publishing industry. Unfortunately, the failure to establish complete Mergers&Acquisitions (M&A) theories in publishing industry has made theoretical support in this area unavailable for the present, as an example of which is the two aborted M&A attempts of Hunan Publishing Group. This paper is supposed to apply modern M&A theories to the publishing industry and attempt to pave the way for the M&A in the publishing industry.This paper begins with a summary of M&A and briefly reviewed the foreign and domestic M&A history. It holds that M&A is a purposeful transaction behavior between market bodies concerning the transfer of part or full property rights accompanied by that of assets ownership. Background of publishing industry M&A in China and trends of foreign publishing industry M&A are discussed. The author explores the characteristics of publishing industry in China, establishes the interactive model between ideological demand and market demand, and thus settles the ideology problem in the publishing business in China. The characteristics of publishing industry arc elaborated. The model of "Know-how Deciding Enterprise Boundary" is introduced. The author analyses the M&A motives among the publishing industry and puts forward the Value Measurement Model, laying a foundation for M&A in publishing industry.Second, the ways of M&A are categorized briefly. The author analyzed the industrial modes of publishing industry M&A in detail through modern economics theories, includinghorizontal M&A. vertical M&A, and combined M&A, for any strategic M&A involves the choice of industry orientation. The difference in industrial mode during M&A may well make a difference in conforming risks, conforming contents and conforming modes, and have strong impact on the effectiveness of the M&A.Third, on the basis of analyzing basic theories concerning the M&A of publishing businesses, this paper analyses the post-M&A conforming of publishing businesses in China. It holds that conforming is a vital link in the M&A process. The author puts forward the risk factors for publishing businesses experiencing M&A and conforming and maintained that different conforming modes be adapted for different risks. A three-dimensional M&A and conforming mode is established under risk latitude, task latitude and conforming depth. An initial countermeasure is given for publishing businesses' M&A and conforming in China.Lastly, this paper presents two real cases with theoretical analysis. One shows foreign publishing business's M&A, development and expansion under complete market economy system. The other presents an M&A case in China under the current circumstances. Brief comments are provided.