The Discussion On Financing Choice Issue Of Huayi Brothers Media Group

Media industry belongs to the category of the third industry,and it is an important part of national economy in our country.Due to the dual nature of the media industry —political attribute and commodity attribute,the media industry has carried on the strict control.With the deepening of the process of accession to the WTO,China's media reform also gradually deepened.After the global financial crisis in 2008,the country is looking for new economic growth point,proposed culture and power strategy,and has issued a series of policies and measures to support the industrial development of cultural.Although the media industry has a huge development potential and high profit return,due to the features of media industry,the financing problem also has been an important factor of restricting China's media enterprise bigger and stronger.In recent years,scholars have the attention of the media industry's financial problems is increasing.However,most scholars analyzed financing of the media industry from aspects of a single,such as venture capital financing,listing financing and so on,few scholars combined with enterprise life cycle to research media companies' different needs for financing in the different stages of development.Capital is one of the core factors that affect a business development and growth.Therefore,the combination of enterprise life cycle for financing problems,media companies analyze the different demand for capital in different stages,and it has important practical significance to guide the companies which in the different stage of development choosing the most appropriate way of financing.This thesis summarizes the related studies,based on the theory of capital structure,the features of media industry and enterprise life cycle theory;select a leader in the private media companies--Huayi Brothers Media Group as a case study.Huayi Brothers was founded more than 20 years,and gradually grow from the initial small advertising company into a big media group.That can't leave the Wang brothers' efforts,and also can't leave the good operation of capital.For capital operation in media industry,Huayi Brothers Media Group has outstanding performances.In different stages of their life cycle,Huayi Brothers chose the suitable financing,not only balance the business risk and financial risk,but also to use the capital enhancing the enterprise value.Based on the life cycle theory,I believe that selected Huayi Brothers Media Group to discuss the financing choice issue has typical significance.In the start-up stage of Huayi Brothers,business risk is very high.The main source of financing is from the internal financing.Huayi brothers use the advertising business profit to meet the needs of capital.In the growth stage of Huayi Brothers,business risk decreased,to some extent,it absorbed the debt financing.However,the main ways of financing in this period are the Private Equity and Frequent Acquire.The way of "Equity financing and equity repurchase" is the highlight of Huayi Brothers' private equity.It not only obtains the capital,but also to improve the control position of Wang brothers.In the Maturity stage of Huayi Brothers,business risk greatly reduced,and successfully listed on the Shenzhen Stock Exchange.During this period,the choice of the financing way became more aggressive.Huayi Brothers used a lot of debt financing,and there are variety of options for financing to choose.No matter in what stage of business development,Huayi Brothers has chosen the most suitable way of financing,so that in the film,television,artist agent,brand licensing,and real scene entertainment,internet entertainment and other businesses has a good momentum of development.Through the analysis of the Huayi Brothers Media Group financing choice,combined with its influence on business management and corporate strategy,this thesis summarized the several revelations for media enterprise: First,establish a good financing idea,eliminate the bad ideas of financing,choose the "good" capital,and consider the impact on the power of control due to capital inflows;Second,to accurately judge the life cycle of the enterprise in which to determine the amount of financing needs;Third,combined with its own development characteristics to choose the appropriate financing and the specific financing may vary depending on the characteristics and changes in corporate management;Fourth,the media industry with dual nature,enterprises should learn to avoid policy risk and with the help of policies to promote enterprise development;Fifth,Well manage companies and develop core competitiveness,so to enable enterprises have a key driving force for rapid development.I hope that through the analysis of specific case in media industry financing problems of Huayi Brothers Media Group,this thesie could offer some revelations,especially in the field of financing choice.