A Case Study Of Bluefocus Acquiring Bojie Advertising

With the rapid economic growth in China,the competition between enterprises is increasingly fierce.So it is an effective way for companies to achieve its rapid growth,improve competitiveness and achieve strategic goals by mergers and acquisitions.Public relations and advertising industry is intelligence intensive and capital intensive industry.In order to adapt to environmental changes and meet the demand of customers,advertising companies need to acquire to realize rapid development.Bluefocus is standing out in the media industry because it's the leading enterprise and the first domestic listed company in public relations industry.The paper makes a study on Bluefocus acquiring Bojie Advertising and we hope it will have a reference value for light assets of enterprises' mergers and acquisitions.This paper analyzes M&A motivation mainly from two aspects of the strategy and market power by studying on backgrounds of companies and industries,and also combing with SWOT analysis of Bluefocus and M&A theory.Then the paper describes the acquisition process and specially emphasis on innovative M&A means like the bet protocol and bridging loans.Those methods are used to reduce the risk of M&A and repay the arrears of the affiliated party.And then the paper studies M&A performance of Bluefocus through the event study method and financial index method.As a result,the M&A performance are good whatever short-term market performance or financial performance.In the end,through the research on this M&A case the paper provides the good reference and ideas including correct selection of targets,the bridge loan,setting the bet on terms and attaching great importance to the human integration for M&A of the domestic advertising companies in future.