Research Of OURPALM’s Serial M&A Cases

The rapid development of internet has led online game industry rise and be gradually transformed into a mainstream industry.In China,it has been 17 years since the online game industry came into being and this industry has become more and more mature.Because of the support of national policies and the favorable development of emerging industries,a large number of online game companies make acquisitions,accomplish the rapid strategic transformation and upgrading,constantly improve their industrial lines and obtain better business performance in order to maintain their growth opportunities,gain advanced research and development technology,expand their market shares and enhance their market competitiveness.In this way,they will be able to remain invincible in the intense market competition.Ourpalm Technology Co.,Ltd is a typical representative of these companies.In recent years,the academic world has conducts a number of empirical researches on the performance of M&A,yet rarely investigated the motivations and performance of one online game company’s series of M&A.For this reason,this paper utilized forms of case study to specifically analyze and discuss motivations,performance and risks of Ourpalm Technology’s series of M&A,to accumulate experiences for future relevant researches and provide certain references for other online game companies to improve their performance and enhance their own values through M&A.This paper can be divide into 7 chapters.Chapter 1 is the introduction,introduces this paper’s research background,research significance and reviews documents related to the merger and acquisition.Chapter 2 is the theoretical basis and mainly elaborates the outline,motivations,performance and risks of M&A presented in this paper.Chapter 3 introduces Ourpalm Technology and the target companies in details,explains the process of Ourpalm Technology’s series of M&A and schemes of merger and acquisition of the target companies.Chapters 4-6 deeply researched motivations,performance and risks of Ourpalm Technology’s series of M&A successively.In addition,while analyzing the performance of M&A,the event study method is employed to investigate the market performance of companies;the business performance,strategic motivations and innovation capacities of Ourpalm Technologyare analyzed by combining financial and non-financial indexes.Chapter 7 is the conclusion,inspiration and deficiencies of this research.According to above analysis,motivations of Ourpalm Technology’s series of M&A are various and include the necessity of business strategic transformation,pressure of its own growth and demands for enhancing industrial competitiveness.Next,the market responses of Ourpalm Technology are positive;shareholders obtain certain effects of short-term wealth;the company performance is improved.Ourpalm Technology’s M&A facilitate the strategic transformation of its primary business and enhance its status within online game industries.Furthermore,they also expand its market shares,improve its business performance,motivate its technological innovation capacities and make it obtain the technical synergy.Finally,main risks Ourpalm Technology faces are that target companies can not achieve their business commitments and have risks of goodwill impairments and manpower resource.Through analyzing the case of Ourpalm Technology,the enlightenment is that the company should adapt to the market demand in time and strategic transformation,adopts the series of M&A means to promote the enterprise growth and the reasonable use of the mixed payment way acquisition,in addition,puts forward the suggestion to the existence risk: Investigation,strict supervision of regulators and strengthen the integration of human resources after M&A.