A Case Study On The Mergers And Acquisitions Of BlueFocus

As the rapid development of the science and technology, the human has entered into an information era, which regards digitization and networking as the platform. Meanwhile, there are various carrier for the dissemination of the modern media information. The core competence of the traditional advertising media has declined continuously. Not only that,as the constant advancement of the globalization tend, the Chinese advertisement marketing and broadcast companies should not only confront the competition with domestic companies, but also face the competition with the transnational marketing and broadcast groups. At the general background of economic informatization and globalization, the advertising agencies must make business transformation rapidly, so as to adapt to the variation of new marketing and broadcast environment. Meanwhile, in order to promote the adjustment of the economic structure and the transition of the economic development pattern, the Chinese government formulates policies constantly to facilitate the enterprise merger and restructuring; encourages big-scale media and advertising agencies to establish diversified ownership structure through participation, holding, merger, purchase, alliance and other expansion mode; and supports those enterprises to develop into large and modern enterprise groups as well.With the double function of industry change and national policy support, massive listed advertising agencies tightly seized the historic opportunity, depended on the developing features of their industry, and positively made use of the capital power to realize the rapid business expansion and carry out merger and purchase for the new-technology marketing and broadcast companies and new media companies. So as to improve the service chains of the enterprise and scale up its operation, developing towards the synthetic marketing and broadcast service groups.In order to study the capital operation laws of the listed companies in China at the current economic background, Blue Focus was chosen to be the significant study case as it is the leading company of the advertisement marketing industry among the listed companies, which possess the industry characteristics of merger and reorganization. To be specific, firstly, the author introduces the main business of the Blue Focus Company, teases its merger process, and elaborates the condition of its industry; secondly, the author analyzes the selection of thinking at pre-merger period, the design of payment and risk control method at while-merger period, the post-merger integration strategy and the synergy implementation after serial merger and acquisition; then, the author analyzes the problems existed in the serial merger and acquisition of the Blue Focus; at last, the author makes a case summary and proposes some specific suggestions.Through the comprehensive analysis of the Blue Focus’ s merger operation strategy, the author reckons that Blue Focus is very successful in the application of capital strategy, specific operation and resources integration. It is an extremely representative case that the Blue Focus achieved development by virtue of the capital power. However, it cannot be denied that there are some deficiencies in each stage of Blue Focus. As to the selection of objects of merging, the company should select the objects whose core businesses have good prospect and those who conform with the industry development. In addition, the traditional payment method cannot satisfy the requirements of continuous merger any more, thus the company should comprehensively apply other means of payment, such as convertible bond, preferred stock, etc.; as to the risk management of merger, the company should improve the management mechanism. Meanwhile, as to the post-merger management, the company should strengthen the management of the receivables.