A Case Study On ZheDao Merging Bianfeng&Haofang

The rapid development of the Internet and other new media, continue to erode the market share of advertising, traditional media business has brought great challenges. Meanwhile, the Sixth Plenary Session of the 17 th, the Third Plenary Session of the 18 th CCP has made "encourage strong cultural enterprises trans-regional, cross-ownership mergers and acquisitions," "encourage traditional media and new media convergence." In this context, a number of state-owned enterprises actively seek traditional media and cultural transformation, mergers and acquisitions to become one of the important path of transformation.Z company is the newspaper business merger restructuring pioneer. This paper selected object in Z company mergering B company and H company as a case study, literature study, a study case study method, event study, comparative analysis.First, the paper describes the background and significance of this research, and M & M’s from the status quo motivation, performance, and Chinese enterprises, the status quo of China’s newspaper media transformation four fronts literature review.Secondly, the paper introduces the acquirer and the target company were the basic situation, business conditions and the financial condition, and results of the acquisition process and to do a specific instructions.Again, the paper separately from the background and motivation of mergers and acquisitions, M & A program and the associated risks, mergers and acquisitions analysis of three aspects of performance evaluation. Analysis found that this acquisition program for the high valuation of the target company, the acquisition of short-term market performance is positive, but significant strategic performance temporarily.Finally, the paper summarizes the teachings of the present case the acquisition of state-owned enterprise restructuring and cross-cultural merger of two Internet companies.The conclusions of this case study: the traditional media merger is the result of multiple factors operating environment, policy environment, motivation and strategy executives and other personal motives; in the case of the basic structure of the transaction bound, the acquirer can still additional terms of optimizing the structure of the transaction, which serve to reduce the effect of post-merger integration of difficulty; cultural financing state-owned at the time of the acquisition, although able to enjoy the convenience of financing the acquisition of loans, but in terms of equity financing was subject to strict supervision and restraint; hot capital market holding does not represent the ultimate success of the acquisition restructuring, mergers and acquisitions began to traditional media is just restructuring, post-merger integration is more critical.