| The Internet industry is the industry that our national economic restructuring and China’s innovative construction should focus on, with the rapid development of the Internet industry,Internet companies have sprung up like mushrooms. At the same time, the merger and acquisition of the industry also occurred frequently. iQIY merger with PPS, YouKu merger with Tudou, Didi taxi merger with fast taxi, etc.These M&A solved some problems, but also caused a lot of risks for companies’ development in the future.Based on the theory of merger motivation and the theory of merger risk management, this paper use the merger of Youku and Tudou as an example to study the reason of the Internet enterprise merger events and also the risks brought by the mergers. First, analysis the present situation and the characteristics of the Internet industry’s M&A. Then, analysis the causes and risks of the merger of Youku and Tudou. The motavitions of this event is to adapt to the competition, reduce the cost, expand the market share, and also by the influences of the investors.The risks are resulting from the following aspects: legal, market situation, the company’s strategy,the payments for shareholders, finance. Focus on financial risks and the risk for shareholders’ payments.Through the analysis we found that, The merger of YouKu and Tudou reduce a huge amount of capital cost caused by competition, but also improve the ability of controlling the market. But there are still a lot of risks in management, finance, and also a low payments rate investment for shareholders. At the end of the paper I put forward the following suggestions for those who want to merger or acquirer other Internet company: be careful in choosing target company and making strategy, hire professionals to operate, pay attention to the integration after M&A. I hope this research can provide reference for other Internet industry’s mergers and acquisitions and also for the orderly integration of the whole Internet industry. |
PDF Full Text Request