The Theoretical And Practical Research On The Valuation Methods Of The Mergers And Acquisitions Of China’s Cultural Media Industry

With the development of economic and the revolutionary of technology, China’scultural media industry has been into a high-speed-development stage. Theinternet and the mobile internet have been increasingly involved in the industry;in result, the new media forces the traditional media to be faced with anextremely fierce competition. Mergers and acquisitions (M&A) is an importantway of cooperate expansion and it happened extensively in China’s culturalmedia industry nowadays, which accelerates the integration of the industry.Valuation, as a key technology in M&A, has an essential meaning to beresearched.This paper modifies the general valuation methods based on the specificcharacteristics of the cultural media industry, in order to explore the suitablemethods for China’s cultural media industry. Through the way of case study, itreveals different methods for different kinds of enterprises and the problemsexisting.From the theoretical and practical aspects, this paper comes to a conclusion thatfor newly-built target enterprises, Modificative Market Approach is preferable,using the VAM to avoid the risks; but for mature target enterprises, thecombination of Modificative DCF Approach and Market Approach isrecommendable. It can be an innovation of theoretical methods and a referencefor the practical use.