The Analysis Of Baidu’s Acquisition Of 91 Wireless: A Transaction Cost Perspective

Merger and acquisition(M&A) has been regarded as a common development model for business expansion. With the development of science and technology, M&A of High-tech Company is getting more vigorous. However, the features of High-tech M&A have not been fully understood by academic and business groups, which lead to many fail cases. Hence, the analysis of influencing factors for High-tech M&A has become an important topic in M&A research. The paper explores the influencing factors of High-tech M&A from the perspective of transaction cost, proving references for High-tech Company in making the right decision.The paper includes seven chapters. The first chapter introduces the background and significance of the topic. The second chapter introduces research status, both domestic and international. The third chapter establishes an M&A feasibility analysis framework based on transaction cost theory and technology factors. The fourth chapter analyses the background and motivation of Baidu’s acquisition of 91 Wireless. The fifth chapter is a feasibility analysis of the case. The sixth chapter evaluates the performance of the case. The seventh chapter aims to conclude and sum up the inadequacies of the paper, and to provide reference for both further study and business practices.