Research Valuation Culture Media Mergers And Acquisitions

Mergers and acquisitions are economic business activities which are bound to happenin the process of developing market economy. These are also happened between culturaland media enterprises. And assets valuation plays an indispensable role in the mergers andacquisitions.In the article, the present situation of mergers and acquisitions in both domestic andoverseas cultural and media enterprises are concluded. Then, the application of incomemethod in the assets valuation of mergers and acquisitions between cultural and mediaenterprises is researched, with the example of the Second-Board Market. The problems inthe choice of valuation methods and the confirmation of basic parameters of incomemethod are analyzed, and suggestions are given at the same time. After that, the incomemethod in the assets valuation of mergers and acquisitions between cultural and mediaenterprises is optimized. There are some limitations in the traditional income method, andthe income method is corrected, including the segmented discount model, the confirmationof discount rate and the parameters of the Capital Asset Pricing Model. In the end of thearticle, through the analysis of a case, the traditional income method and income methodwhich is corrected are applied in the case. The basic parameters of income method areconfirmed, and then the results of assets valuation are obtained. The income method whichis corrected should be applied in the assets valuation of mergers and acquisitions betweencultural and media enterprises.The research in the assets valuation of mergers and acquisitions between cultural andmedia enterprises in the article is hoped to promote the standardization and marketizationof the domestic cultural and media enterprises, and make them improve theircomprehensive strength through the mergers and acquisitions.