The Case Study On Ourpalm Co., Ltd. M&A Dovo Technology.inc

In recent years, as the economy continues to develop, it is difficult for those companies who wantto rely solely on its own strength to achieve rapid expansion purposes. Under the background of such alarge environment, especially the circumstances of economic globalization, more and more companies havechosen mergers and acquisitions to achieve expand market share and improve competitiveness. Throughmergers and acquisitions, you can make independent companies combined, which can achieve lower costs,reduce competition, share resources, and generate economies of scale and other effects. Over the yearsmany previous studies on the theory of mergers and acquisitions have appeared and the outcomes also tendto improve, however it is worthy of our consideration how can we apply these theories in practice under ourpeculiar situation.Under the background of the rapid development of market economy in both domestic and foreign,mergers and acquisitions(M&A)among enterprises increasingly fierce. In particular, the online gameindustry which does not rise a long time is facing the challenge of large-scale merger integration. Thispaper mainly analyzes the M&A case of Ourpalm Co., Ltd. and Dovo Technology.Inc with the theories ofM&A, and carries out the following works:The first part of this article analyses the current environment ofmergers and acquisitions and the development of online game industry and then analyses and summarizesthe results of previous studies on mergers and acquisitions which paves the way for the case analysislater.The second part of this article summarizes the theories used in the case, mainly including theories ofeconomies of scale, diversified operations, synergistic effect, arrogant hypothesis and market trend, whichprovide a theoretical basis for analysis of the third part of the article.The third part of this article analysesthe mergers and acquisitions case of Ourpalm Co., Ltd. and Dovo Technology.Inc, which is the mostimportant part of this article. This part mainly includes six aspects. Firstly have a brief introduce for theoperating conditions and business conditions of the two companies in order for understanding the twocompanies. Secondly analyse the processes of M&A. Thirdly analyzed the motives for M&A. ThroughM&A listed company could enhance its capability of development, distribution and operational of webgames its existing business scale and profitability. M&A side could achieve curves listed. So M&A is beneficial for both sides. Fourthly analyse the choice of payment for the consideration paid in thetransaction. This M&A innovative use the payment method of hierarchical acquisition and different pricewith shares. Ourpalm Co., Ltd. also arranges incentives for Dovo Technology.Inc which worth learning forother enterprises. Fifthly analyze the value of this M&A from the views of finance, development strategyand synergies and then reach relevant conclusions. Sixthly analyse the risk of this M&A. Listed companyafter merger faces the issue of integration of management, financial, human resources and business and alsothe risk of the exit of venture capital.This fourth part of this article summarizes the points which worthlearning for other enterprises in this M&A, give some suggestions for M&A of online game industry inChina, have a deep thinking for the development of the online game industry.This paper selects the M&A case of Ourpalm Co., Ltd. and Dovo Technology.Inc to analyse theproblem of mergers and acquisitions. Parties of mergers and acquisitions are all online game industry, butbelong to different fields, and have potential for development in their respective areas. Case has its ownpeculiarities, but also universal. Through the analysis of this case, we have deeper understanding of theprocess of mergers and acquisitions, provide some reference for future mergers and acquisitions of Chineseenterprises. And I also hope we can have thought of the development of the online game industry throughthis case.