On Motivation And Risks Of Enterprise M&A For Internet Platform

In recent years,mergers and acquisitions of Internet companies have been frequent,which has drawn wide attention from all circles.In August 2016,mergers and acquisitions between Didi Chuxing and Uber China is a typical case.Based on the characteristics of Internet platform enterprises,this paper targetedly analyze the motivation and risk of mergers and acquisitions by taking drop mergers and acquisitions between Didi Chuxing and Uber of China as the target,which can effectively sort out the merger context of the Internet platform,risks contained,for putting forward the prevention measures for saving against a rainy day.This research not only has the reference value for the case that mergers and acquisitions between Didi Chuxing and Uber China,but also for the Internet platform enterprise with similar industrial organization and enterprise organizational characteristics.The introduction part is the first part of this paper,which mainly elaborates the research background of the thesis,and makes an objective comment on the research status and achievements of Mergers and acquisitions of scholars at home and abroad.The second part is the concept and theoretical basis of M&A.It focuses on the concepts and classification of general mergers and acquisitions and Internet companies,the motivational theory of mergers and acquisitions and the characteristics of Internet economy.The third part is the case,focusing on the outline of Basic development situation and M&A activity of Didi Chuxing and Uber China.The fourth part,combined with the theoretical basis,analyzes the motivations of the M&A events of Didi Chuxing and Uber China.The fifth part analyzes the risks existing in the M&A activity,based on the characteristics of Internet industry organization and enterprise organization.At the last part,this paper put forward some precautions to the risks involved in the M&A activities in this case.The study found that the Internet platform companies may be based on competition for market share,to achieve economies of scale,to play a synergistic effect,to meet the individual needs and other factors to consider mergers and acquisitions,the process contains risks like own valuation,business integration,industry development,policies and regulations.It should take appropriate precautions to enhance the risk prevention capability in the M&A process.