Industrial Integration In The Context Of Corporate Mergers And Acquisitions Research

Industry convergence is a new phenomenon under digital technologies'development, network technologies'development and the shrinking boarders between telecom industry, media industry, press industry, IT industry etc…The overlaps between industries are happening more and more often. Nowadays, although industry convergence appears a lot in some areas, it is a signal: it starts from its own industry and its hypotheses and theories, which are galvanized by new technology revolution's challenge and impacts, then the convergence evolves with the developments in new technologies, IT industry's developments, and industrial information developments. This impact will be more and more evident.The research object of this paper is company M&A which base on industry schism. Base on the analysis about the development of company M&A under the condition of industry convergence, the writer wants to find out the characteristic and develop the theory of M&A. Under the condition of industry convergence, the market circumstance and product character which companies facing are changing, the company always adopt the M&A strange for the aim of development and adapting the change.Through the research, the writer finds that the company M&A in circumstance of industry convergence can be divided into three stages. The first stage arises in the 1980s, and the aim is"convergence development"; the second stage arises in 1990s, and the characteristic is operations convergence between telecom industry and IT industry; the third stage arises in 2000s, which is the fully convergence stage between media industry, telecom industry and information industry. The evolvement of company M&A actions reflect that more and more influences are occurring on society under the influence of convergence. They also reflect the change stage that people comprehend the industry convergence. The partition of industry convergence has been validated by the policies which are changing from industry control to promoting industry convergence.Today, in the range of the world, the climax of company merger in the condition of industry convergence is not coming yet. The M&A forms focus on plane-M&A, speak-M&A and mix-M&A, which are trans-regional and trans-country. About the company M&A phenomena in the condition of industry convergence, some research papers have discussed, but the research frames are base on the ex-theory of M&A, which in defect of unified research. This paper tries to analysis the new M&A form as a whole, and research into the characteristics.The company M&As in the condition of industry convergence always occurred in the developed area or country which have mature digital technology, network technology and information technology, so we can't analysis the whole condition of the world. In the paper, we collect some cases, such as AOL merger Time Warner, Sun Culture merger SINA, print company merger net company, which are all in the condition of industry convergence. Base on the cases analysis, we lay stress on the merger reason, merger condition and merger characteristic. This paper also compares the new merger action with the old merger actions, and explore the new carve standard for the merger actions.In the paper, the merger action has been divided into"scale merger","integrate merger","diversifications merger"and"upgrade merger"age. The new dividing method doesn't negate the old merger form, its just difference from the old dividing method in the jumping-off point. The new dividing method begins in the merger result, which differentiate from the old dividing method which begins in the jumping-off place. In the paper, writer brings forward"upgrade merger", which can delegate the company merger action in the condition of industry convergence.The paper focuses on the merger actions in the condition of industry convergence, through the research on merger reason, merger condition, merger characteristic, and the writer want to prove the new merger form, and want to develop the merger theory. Moreover, the cases analysis can also give some practice guidance.