Evaluation Based On Real Options Merger Synergy Of Culture Media Company

In recent years, rapid development of the Chinese economy in the culture and traditional media company's transition period, the investment activities of enterprises in strategic acquisitions conducted in a way more and more. While competition in the capital market and M & A transactions a lot, but the implementation of M & M party program, the results did not achieve the desired objectives, the success rate is very low. Therefore, the merger parties gradually began to change after the merger of research and attention to the enterprise management, financial and operational aspects. Since the existence of the business in the implementation of investment strategy option characteristics process, therefore, it introduces real option for post-merger synergies assessed. Finally, combined with China's cultural media enterprises development situation, this paper uses case to illustrate the relevance of real options method merger synergies.This paper introduces the theory at home and abroad, citing the combination of new theory of real option theory and M & A synergies, and introduces the traditional assessment methods merger synergies. However, due to M & A market uncertainty, the traditional discounted cash flow method of merger synergies assessment does not apply. Thus, on the basis of real option theory and M & A synergy theory bound, it points out that the company in the use of investment programs, synergies of its merger generated during the existence of the option feature, it can be a synergistic effect with Real Option Law M & estimates.Secondly, this paper discusses the theoretical basis of a synergistic effect on the presentation of the cultural characteristics of China's media industry at the present stage, trends and M & A status quo. On the one hand, economic development, stimulate consumer demand for culture and entertainment, and the "Internet +" model has become the cultural media companies to pursue the development of new business models. In the process of enterprise development culture media, old and new media integration into the mainstream of development, more and more M & A activity to promote the development of the cultural media industries. Therefore, synergies culture media enterprises when we need make investment decisions can reasonably assess the future development of its acquisition are very important. On the other hand, because the culture media companies in the development and expansion of the industry chain process, from corporate culture, employees are closely related to the products and innovation. That is, the sense of innovation culture in the presence of the media industry affects the complexity and uncertainty of its trading activities in the market. It can be drawn from the synergies generated by the cultural media industry M & A activity in line with the characteristics of real option. Therefore, this paper introduces real option for merger synergy assessment, both reasonable estimates of cultural media enterprise acquisitions programs and to meet the conditions for pricing options.Finally, this paper Blockbuster merger Pearl of the Orient, for example, by Real Options Valuation for M & A synergy value. Synergies through mergers and acquisitions and to pay a premium compared to explain the takeover proposal is desirable, and analyze change after the merger the new listing management, financial and operational aspects of the synergy that is to verify the reasonableness of Real Options.