The Research On The Application Of Real Options Geske Model In Evaluation Of M&A Of Film And Television Media Enterprises

In recent years,China's traditional film and television media enterprises are in the period of transformation and upgrading,and there are more investment activities in mergers and acquisitions.When the activity of M&A increases year by year,the result of M&A is not as optimistic as expected.One of the important reasons for this issue is the inappropriate evaluation method,which makes the transaction parties' wrong prejudgment of the value of the transaction.Under the traditional evaluation method system,the uncertainty and flexible management value of the M&A can not be considered accurately,so it can not be more real to the enterprise value in the merger and acquisition.Considering the uncertainty of the enterprise and the increase of the added value of M&A,this paper introduces the real option model to the field of value evaluation in the process of merger and acquisition of film and television media enterprises.This paper systematically analyzes the characteristics and development patterns of film and television media enterprises,and the motivation and risk of M&A,and probes into the applicability and limitations of the three common evaluation methods in assessing the value of film and television media enterprises,and summarizes the existing domestic and foreign real options theory.Based on the above theory,this paper holds that real option theory can effectively make up for the deficiency of traditional value evaluation method neglecting the management flexible value of enterprise managers,and analyzes the applicability of real option theory in the value evaluation of film and television media enterprises.At the same time,the M&A of film and television media enterprises can be regarded as a compound option.In this way,the basic idea of evaluating the value of film and television media in M & A by real option Geske model is established and the concrete estimation model is given.Through the analysis of the case of the Great Wall film' acquisition of Premiere Time Inc,this paper uses the Geske model to estimate the Premiere Time Inc,and quantifies the Geske model into two situations under the competitive and the non-competitive situation,and calculates the effect of the option model on the value of the Premiere Time Inc.It will open up new ideas for the evaluation of M&A value,and provide feasible suggestions for perfecting the system of M&A valuation method of film and TV media enterprises.