| The rapid development of the Internet and new media industry has brought tremendous impact to China's traditional media industry.In order to improve their business structure,and with the strong support of China's policies,many old media companies choose to reform through mergers and acquisitions.The M & A craze of the media industry has reached its peak in 2014.The total number of M & A cases has been more than 200,and the amount of M & A has exceeded 220 billion yuan.The transaction of the BesTV case has reached 49.2 billion yuan.M&A originated in the late 19 th century.Since then,the theoretical system of mergers and acquisitions based on the rapid development of the world economy has become more and more abundant.On the good side,M&A can expand the scale of enterprises,increase profits,reduce costs and realize economies of scale.But on the contrary,a large amount of M&A funds will affect the stability of the development of enterprises,and the integration after M&A can not be underestimated.BesTV and Shanghai Oriental Pearl Co.,Ltd are both affiliated of Shanghai Media Group(SMG).As an old media enterprise,Oriental Pearl Co.,Ltd has not only brand awareness,but also owned three major sectors: entertainment industry,media industry and investment industry.Besides,BesTV is one of the world's top network TV operators with powerful new media technologies such as IPTV.The paper mainly adopts case study method,supplemented by literature research.First,it introduces the main theoretical basis of this article which includes the efficiency theory of M&A and the synergy effect of financial cooperation,puts forward the conditions and evaluation methods of financial synergy effect.Then it elaborates the strong industrial background of the two companies and the equity relationship between them,and deeply explores the significance of their M&A.Also,the analysis process includes financial indicators analysis,analysis of income level,cash flow analysis,EVA analysis.Finally,for achieving the long-term financial synergy,according to the defects in the process of M&A in the case,and improvement measures are put forward in the end of the article.Through the case study,we found that the new company have integrated the business sector,realized the strategic optimization and upgrading,and had a good performance in terms of operating capacity,debt paying ability and profitability,tax saving effect.The cash flow management level also increased significantly.Although the EVA increase was not obvious,but its capital structure was significantly improved.As a whole,the financial synergy has been realized.Reviewing the financial data of BesTV and Oriental Pearl from 2012 to 2017,we find that the product cycle of media enterprises is relatively long,and accounts receivable accounts for a relatively large proportion,which has affected profitability indicators to a certain extent.After M&A,enterprises may have business and institutional integration is not in place,resulting in a waste of costs.Therefore,this paper puts forward the following suggestions according to the actual situation: improving the management level of accounts receivable;strictly controlling cost and expenses;accelerating the development of technological achievements and paying attention to the integration behavior after M&A.. |
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