A Case Study Of Vision Chain Media Merging DMG

A new tide of M&A has started around the world along with the promotion of national policy, the development of technology and the mature market, Chinese enterprises have to choose, by means of merger and reorganization to optimize asset allocation, expand the scale of the enterprise, realize the strategic transformation. Merger and acquisition also became a hot issue in academic research, accumulated the rich research achievements. Scholars generally think that M&A is a complex and risky investment activities, and hidden high failure rate.It is against this background, this paper select Vision China Media mergers DMG, as a case study of mergers and acquisitions this behaviors.First of all, on the basis of literature review, according to the views of the general academic introduces the process of mergers and acquisitions,risk classification and definition of M&A. Then, depending on the Vision China Media as an example, this paper mainly introduces the merger and acquisition(DMG), digital media group in Vision China Media is analyzed emphatically before and after the merger of financial data,identify the risk of mergers and acquisitions, determine its ultimate results. The results show that the cases appeared a greater risk of mergers and acquisitions, mergers and acquisitions is a flop. Vision China Media mergers fail finally, revenues and profits fell sharply after the merger, debt multiplied, potential losses of billions of dollars inenterprise, ran out of cash flow etc. Phenomenon, put forward the corresponding response to risk, remedy measures of failure. Including:broaden the financing channels, business model innovation, strengthen cultural integration, clear legal issues, etc.While this article conclusion M&A decision for other enterprises on the market have a certain reference value. But this article as a single case analysis, the conclusion can be promote, still must carry on the analysis and improvement, which is the next step research direction.