Research On Capital Operation Of Interet Enterprises Take Alibaba As The Case

The rapid development of China’s Internet gave birth to the emergence of network companies, and the capital operation of Network company gave birth to the emergence of Internet Conglomerates. In the list of top 100 Internet enterprises in China of the year 2015, Alibaba ranks first, Tencent, Baidu and Jingdong followed. With a total market capitalization of $426 billion, these four companies are among the top 10 global Internet companies. In 2014,their revenues reached 573.5 billion yuan, accounting for 20.5% of the total amount of information consumption in China. For Alibaba, ranking first has a lot thing to do with its own capital operation.This paper starts from the theory of capital operation. By sanding on the shoulder of the achievements of predecessors, this paper focus on enterprise capital operation modes and risks that may happen. And then combined with the characteristics of the Internet enterprise itself, including the stage of development, profit model and financial characteristics. On this basis, a performance evaluation system of capital operation of Internet enterprises is summarized.In this paper, we choose Alibaba as the example. Its capital operation behavior is divided into two types:expansion and contraction. During the prophase,Alibaba carried out mergers and acquisitions. But with the development of the society and the change of their own strategy. Alibaba changes its concentration from electronic business, toward the direction of diversification. Mainly because of its B2B business is no longer the core business of the enterprise. So Alibaba chooses the shrinking capital operations—de-listied from Hongkong and restructed its operation department in 2012. The clear strategic intent and appropriate capital operation made itself a International comprehensive Internet enterprise.Meanwhile, Capital operation also brings the political and economic risk as same as management, financial risks. Facing these risks, Ali should pay attention to the management and business integration of mergers and acquisitions in the enterprise. In order to seek a more long-term development in the future.,they also have to ease the financial pressure on capital operation behavior.