Study On Motivation And Performance Of Youku Mergering TuDou

Efficient and reasonable M&A activities can expand the scale of enterprises and meanwhile enhance the market competitiveness of enterprises,ultimately this activities can improve the economic benefits of enterprises.M&A is also one of the important ways to realize the optimal allocation of social resources and strengthen the industry concentration,eventually realize the evolution of the market.Online video industry occupies important position in China’s Internet industry.After seven years of development,from the initial several to dozens of at present,the fierce competition between the major video sites never stopped in order to seize much market share,finally,the whole online video industry is still in the state of spending a lot of money to seize the market,leading the whole video sites are at a loss.And the major video sites provide customers content with high repeatability and waste a lot of resources in the fierce competition at the same time.M&A on the online video industry and the integration of the industry structure is becoming increasingly important.As domestic and foreign scholars have different opinions on the improvement of the status of all the industries and at the same time,there is no unified conclusion about methods of M&A performance.Therefore,this article selects the case of YouKu mergering TuDou,YouKu and TuDou ranked first in the second companies in China’s Internet video industry with a strong representation.This article can provide reference for the future development of China’s Internet video industry through the research.Firstly,this article makes a systematic review of the literature on M&A motivation and the methods of M&A performance at home and abroad and sums up the theory of M&A and the commonly used evaluation methods of M&A performance.Secondly,this article discusses the background and current situation of YouKu and TuDou with the characteristics of Internet video industry.Again,this article focuses on the motivation of YouKu mergering TuDou combined the merger related theory from the analysis of financial indicators,calculated by the change of financial data before and after the M&A corresponding financial index,reflecting the effect of M&A.Finally,according to the results of the case study,this article puts forward the research conclusion that the M&A of YouKu and TuDou have not been significantly improved on some indicators,but,the overall situation has been greatly improved compared with the previous merger.There is reason to believe that mergers and acquisitions as an economic means will become an effective tool for the integration of the video industry in the future.In this paper,on one hand through the case study of Youku,we can further improve the relevant theoretical system and provide a powerful theoretical guidance for the new round of M&A activities in China’s online video companies.On the other hand,this paper can provide new ideas and new methods for the future of China’s video industry of M&A activities,and explore the direction of support for the industry to get rid of the plight of the development and promote the healthy development of the industry.In the future the video industry will accelerate the integration process finally enter the stage together.