A Case Study Of Bluefocus Acquiring Bojie Advertising

Since reform and opening up, along with China’s rapid economic growth,mergers and acquisitions among enterprises become more and more frequentwhile the scale is increasing day after day. George Stigler, an Americanfamous economist and Nobel Prize winner on economics, had ever said:"inthe modern society’s economy development, the outstanding phenomenonwas that enterprises became big international enterprises by Merger andAcquisition (M&A). None of American big companies did not grow upthrough the annexation of a certain degree,a certain way, and nearly no bigcompany grew up only by interior expansion." Nowadays It is same in Chinathat enterprises are tending to use mergers and acquisitions not only toachieve their own rapid growth, industrial structure adjustment and optimal allocation of resources, but also to contribute to the overall economicdevelopment.. This paper is based on the case study of BlueFocus acquiringBojie, introduced background of related parties, analyzed the advertisingindustry, competitors, and policy conditions, analyzed of the acquisitionmotivation, elaborated a detailed process,contents of Valuation AdjustmentMechanism and transaction costs, analyzed the risk of acquisition, mergerprospect of the situation afterwards. Through the research on M&A case,provide a good reference and ideas for M&A of the domestic companies infuture.