Research On The Performance Evaluation Of Dianguang-Media Merge Wired Network Companies

Since the reform and opening up,Chinese media companies have begun to show strong industrialization through active transformation.However,compared to many coun-tries in the world that use the cultural media industry as the national economic pillar indus-try,China' s media companies are still lagging behind.In order to obtain greater platform,channels,technical support,and capital operation,many media companies have chosen to improve their market competitiveness through mergers and acquisitions.In the context of the "three-network convergence" policy,Hunan Dianguang-Media Corporation has merged and acquired four wired network companies in 2012 and successfully integrated local cable network resources in Hunan Province,which also has a certain impact on the company's operating performance.Based on the theory of M&A performance research,this article introduces the history of Dianguang-Media's acquisition of wired network companies,reveals the motivations of M&A,and selects appropriate evaluation indicators to evaluate the performance of M&A specifically.The EVA evaluation method was used for comprehensive analysis.In terms of financial performance evaluation,we selected the financial index data of Dianguang-Media Corporation from 2011 to 2016,finding that M&A has improved its long-term solvency and asset operating capabilities,but the improvement in profitability and growth capacity has not achieved the expected results.In terms of non-financial performance evaluation,the changes of market share,customer satisfaction and technological innovation ability were analyzed.The results showed that its industry status and market competitiveness increased after the M&A,while their technological innovation capabilities have been limited by in-dustry barriers.Based on the above evaluation results,the causes of the problems were analyzed,and four suggestions were put forward:strengthening fund management,strictly control the pe-riod expenses in the merger and acquisition process,establishing a comprehensive M&A performance evaluation and incentive mechanism,increasing research and development investment to enhance continuous innovation capability,getting some enlightenments for other media companies.Designing to improve the sustainable operation ability of Dianguang-Media,and providing reference for the future M&A decisions of media enter-prises in China.