M&A Analysis Of Publishing And Media Companies

At this stage, China’s publishing industry have two major types, one is traditional publishing like newspapers, books and magazines, another is new publishing and media industries, like television and the Internet. With the accelerated pace of modern life, the new publishing gained more and more people of all ages,it is mainly due to the devefopment of mobile Internet devices allows people become more efficient in use of fragmented time; additional, video and audio often give people more shocking than reading experience, more importantly, the "free" as the initial form of Internet media also greatly expanded the emerging culture media market, which will undoubtedly bring traditional publishing media industry a challenge. Also important to note is that the development of traditional publishing media industry itself, there are some defects, such as some publishers to sell their own version number of resources in the hands of profit, which result to a mixed situation on the book market. As consumers and suppliers of information asymmetry, Coase said there have been adverse selection dilemma, making the book market become a "used car market." In such cases, the new publishing can be popular.However, despite the existence of various problems, at this stage, the traditional print media industry is still a large market. There are three main reasons. First, the traditional mass media published a large volume of inertia; second, with the current mobile device or computer equipment compared books can bring a better reading experience; third, the kind books with the purchase of books can satisfy people a self-satisfied, self-actualization psychology. However, the new publishing media industry has always coveted the traditional print media industry’s market.The Case Company-FH is a publishing media company, whose main business is the issue of large state-owned publishing and media companies,60 years of industry experience makes FH media company establish a good reputation and social image in the industry. Publishing and distribution of textbooks and supplementary account for a large proportion of FH media companies, the company’s IPO in 2011 market. Prior to the Listing, FH media group that carried out a package of M & A activity, acquisition targets mainly include two categories, one horizontal merger, in order to expand its main products, especially textbooks for the market; Second, vertical mergers, acquisitions by emerging culture media enterprises related diversification roads, thus passing out of its intention to enter the emerging cultural media industry signal to the market, and in its prospectus this as a concept, and thus access to capital market recognition. After the successful listing, FH media while continuing to consolidate its pre-IPO acquisition outcomes, through a number of subsequent acquisitions of digital business bigger and stronger, bolder investment in digital services, relying on the advantages of its textbook publishing, the establishment of a FH edition textbook-centered education network, learning network, and provide related online courses; hand, in the diversified development of new exploration also made to build "cultural Mall" in the name of the business involved in real estate finance, FH Media is also involved in the business through the acquisition game, and strive to achieve the plane publishing digital publishing plus a large publishing pattern.FH media companies on mergers and acquisitions and performance analysis of the main ideas through horizontal merger analysis, and mixed merger analysis in two ways. Horizontal merger analysis FH media ideas can be roughly divided into three clues, one merger Hainan, Xinhua, breaking regional barriers, access to competitive advantage in Hainan Province; Second merger excellent private press, so that the combination of creativity and capital, access to more economic profit; Third, in times of economic crisis, low-cost acquisition of private bookstores, to achieve diversification. Through mergers and acquisitions to achieve economies of scale, reduce costs, optimize products, and expand sales channels to maximize enterprise value.From the theoretical analysis of mergers and acquisitions idea FH mixed media, we can draw a few clues:one for economies of scale considerations, FH media companies will further expand the traditional media industry business, although this may result in wasteful duplication of. The second is the challenge of emerging Internet-based media, according to Christenser’s failure theory, FH Media Group will enter this field, in order to avoid disruptive changes to the enterprise devastating blow; But the scale of entry on, for risk aversion, reducing the cost of political considerations and other factors, the main approach is to set up companies to enter the field of some independent body to respond to the opportunities and challenges of digital media technology. In addition, the entry way to get out of the process with the goals and values of adaptation factors to consider, FH media companies newly established several subsidiary companies, and is subject to these subsidiaries, to carry out mergers and acquisitions, and the assessment of these subsidiaries traditional business model and the phase difference, conduct independent accounting, in order to better integrate post-merger corporate resources.