Analysis Of Merger And Value Estimation Of APP Companies Based On TBCI

Recently, M&A in the internet industry, especially mergers of APP companies, becomes popular. Both companies competed heavily before merging, but all of a sudden, they got together which make people very interested in these events. However, for many mergers, the companies could not make more profit by merging that it triggers the author’s thinking. This article, based on TBCI model, analyzes the merger of APP companies, then discussing the profit model and giving suggestions.This article is divided into five parts. In the first chapter, it introduces the background, research significance and the way of research and so on. The second chapter summarizes the related theoretical knowledge and models in internet companies and the mergers of internet companies. The third chapter focuses on the TBCI model. It firstly introduces the importance of target users, then analyzing the merger based on TBCI model with conclusion that it is successful when the TBCI after merging is higher than either TBCI of companies before merging, followed by introducing a new method to estimate the value of a company based on TBCI model and talking about the profit model of APP companies. The forth chapter is the example part by analyzing a merger of "Didi" and "Kuaidi" as research examples with the conclusion that this merger is successful. Then it discusses the profit model of "Didi" after merging based on TBCI model. The last chapter summarizes the whole article and gives suggestions to APP companies.For APP companies, it is not the end to accomplish the merger. They need to take advantage of both companies to get more target users and make their trademark become brand which is the most important.