Economic Analysis Of The Motivation Of Internet Enterprise Merger And Acquisition

As human beings enter into the information society from the industrialized society,and step by step to the big data age,the Internet industry has ushered in a new round of development opportunities.Looking at the growth path of the Internet industry,with the introduction and development of Internet technology to enterprises,China's Internet industry has gradually grown into a new engine to drive China's economic growth.The innovation and development speed of Internet companies is fast.In the fierce market competition,mergers and acquisitions have become one of the main ways for Internet companies to expand their scale.Especially since 2012,the M&A activities in the Internet industry are particularly active.Internet business is built on the basis of Internet.Its time-space characteristics are also obvious,which is significantly different from traditional enterprises.Therefore,the M&A behavior of the Internet industry is different from traditional industry mergers and acquisitions.Therefore,this paper starts from the theory of economics and introduce the perspective of time-space analysis,mainly discuss what motivations for M&A of Internet companies under the background of information technology.First of all,the article studies the literature of explaining the motivation of enterprise merger and acquisition and the related literature on the merger and acquisition of the Internet industry.Finding out the applicability of traditional M&A theory to Internet companies and the current research progress of Internet M&A,and seeks for research gaps,puts forward the theoretical basis of the article.Secondly,according to the evolution process of the Internet industry,it is found that the evolution logic shows the change of temporal and spatial relations,and the time and space conversion ability is improved.Then the essence of the time and space economy of the Internet enterprise is to meet the requirement of the solidification of the time and space relations,and to realize the efficient integration of the time and space resources.It is pointed out that the difference between Internet enterprises and traditional enterprises is characterized by low marginal cost,spatiotemporal asynchronism and information accessibility.Then combined with the characteristics of M&A of Internet companies,a refined consider temporal variation economic analysis framework,and introduces in detail the Internet M&A economic motivations is to achieve economies of scale,reduce transaction costs and increase market power and the relationship between time and space is the main power of curing this kind of external expansion for M&A the user selection of scarce resources of Internet companies,unify implementation flow,logistics,capital flow and information flow in temporal and spatial scales within larger.The article is based on the logic of space-time relationship-temporal and spatial characteristics-mergers and acquisitions-mergers and acquisitions.Taking Alibaba group as an example,combined with the characteristics of enterprises and the characteristics of mergers and acquisitions,then use the explanatory framework to analyze the reasons that influence Alibaba's M&A.There are four main reasons:pursuing economies of scale,reducing transaction costs,enhancing market power and solidifying the relationship between time and space.Finally,we make a summary and prospect of the innovation and deficiency of the whole article.