Study On The Performance Of Zhejiang Daily Media Merger With Hangzhou Bianfeng And Shanghai Haofang

With the rapid development of Internet,the traditional newspaper industry faces great challenges.Incomes and profits decline continuously.Meanwhile,national policies have begun to encourage cultural enterprises to merge and recombine by across the region,industry or ownership.Under this background,ZheJiang Daily Media started the strategic transformation of "the whole media" firstly,acquired Hangzhou Bianfeng and Shanghai Haofang successfully in 2013.After three years of integration,the effects of merger have given initial results.Through the analysis of the performance,it can provide reference for the transformation and development of China's media enterprises.In April 2013,ZheJiang Daily Media acquired 100%stock right of Hangzhou Bianfeng and Shanghai Haofang.Firstly,this paper analyzed the motivation and target selection of this merger.Then it discussed the pricing rationality,the financing arrangements,the payment method and the Valuation Adjustment Mechanism.This merger is mainly meant to promote the whole media strategic of Zhejiang Daily Media,and the target companies not only have popular games and impressive performances,but also have a large number of users,which can help in achieving of the whole media strategic.In this merger,the risk of payment and integration has been reduced effectively by signing VAM,private placement to management and installment payment.In terms of pricing rationality,this article shows that the price was overvalued by comparing the value-added rate and P/E ratio with mergers of game companies in the same period.In this paper,the author used the Event Study and the Balanced Scorecard to evaluate the short-term market performance and the long-term strategic performance respectively.According to the event study,in the event window of the first announcement date,the case company's stock shows positive cumulative excess return,reflecting that the market hold an optimistic attitudes about this merger.The wealth of shareholder have been increased and the market performance in short-term is positive.In addition,this paper built a four-dimensional index evaluation system considering the financial,customer,internal processes and learning and growth in order to comprehensively measure the strategic performance of this merger.In the financial dimension,through the vertical analysis and horizontal analysis,it can be found that the profitability,solvency and growth capacity of the case company have been improved after the merger.In the customer dimension,the case company achieved a substantial increase in the scale of users and a rapid upgrading of industry status.In the internal process dimension,the ratio of cost and operating cost is relatively stable,reflects that the level of cost management is favorable.In the learning and growth dimensions,the proportion of R&D investment accounted for the proportion of business income rising constantly,innovative ability has been put more and more attention.Through this merger,Zhejiang Daily Media received a large number of users and incomes.Short-term performance and long-term performance behaved well,and the synergistic effect was significant.Accordingly,mergering with Internet companies is an effective way for media companies to improve the profitability and to break through the plight of the development.It is worth reference!...