A Case Study On Horizontal Merger Motivation And M&A Performance Evaluation Of Ourpalm Co.,Ltd

With the "Internet +" strategy to rise to the national strategy,the development of the Internet industry has attracted attention and has become an important force to promote China’s economic development.In the context of China’s mergers and acquisitions market increasingly active,China’s Internet industry mergers and acquisitions are surging,and the online game industry as a new Internet segmentation industry,in recent years,the number of online games and industry scale has increased significantly in the fierce Market competition in front of the online game industry,the gradual integration of internal integration,online games between horizontal mergers and acquisitions increasingly frequent.This article chooses China’s A-share listed the main business for the mobile online game professional online game company,OURPALM CO.,LTD.as the case study object.Through the research on the strategy of cross-merging M&A,this paper combines the motivational theory of M&A and the M&A announcement to summarize the motivations of the implementation of horizontal mergers and acquisitions,namely,the realization of management and management,market forces and industrial organizations,Technology brands and other high-quality assets complement and the recognition of the capital market.Specific performance as the upgrade of profitability,lower operating costs,operational efficiency,market share growth,access to quality assets and shareholder gains and so on.This paper then constructs the M&A performance evaluation system based on the existing M&A motive theory.By using the evaluation system,Boyaa.LTD is selected as the comparative enterprise,and the operating performance comparison method and the case study method are used.And from the perspective of the profitability,operating costs,operating efficiency,market share,technology brand and shareholder returns,we get the conclusion:The strategy of horizontal mergers and acquisitions has had a positive effect on the performance of M&A,which has made a significant effect on the promotion of the main business.In the implementation of horizontal mergers and acquisitions strategy,the market share of OURPALM CO.,LTD showed a steady upward trend,and the overseas business development is showing a better growth,research and development capabilities and brand value are showing a good situation.The capital market is optimistic about the horizontal M&A activity of OURPALM CO.,LTD,and the M&A activity brings some benefits to the shareholders of the company,based on the value of the CAR.But OURPALM CO.,LTD should also do a better job on the M&A integration work.M&A makes the total assets of OURPALM CO.,LTD large-scale increase,which should further enhance the total assets of the profitability and operational efficiency,and achieving the overall performance of mergers and acquisitions and sustained growth.This paper hopes to analyze the strategy of cross-border mergers and acquisitions for China’s Internet companies,especially the development strategy of online game companies to bring some reference.