Research On The Financial Risk Of Alibaba's Merger With Youku Tudou

In order to adapt to economic development and market changes,more and more companies have joined the wave of mergers and acquisitions to expand their scale through mergers and acquisitions,achieve economies of scale,expand new markets,and increase their competitiveness.With the advent of the Internet+ era,the Internet industry has developed at a subversive pace.Several major Internet companies in China are increasing their mergers and acquisitions in companies in different fields to realize their diversified development.However,compared with traditional industries,the Internet industry has the characteristics of light assets on the one hand,and on the other hand,the Internet industry is always pursuing innovation and change,which makes it difficult to study and control the financial risk of Internet companies in mergers and acquisitions.In order to reduce the company's financial risks in mergers and acquisitions,the possibility of losses caused by mergers and acquisitions to the company will be minimized.This article uses literature research methods,comparative analysis methods and case study methods to study case companies.This paper analyzes Alibaba's merger and acquisition of Youku Tudou as a case study.Based on the background of the selected topic,the research purpose and the research significance,the paper thoroughly studies the relevant literature on the financial risks and preventive measures faced by the enterprises in the mergers and acquisitions in recent years.Relevant concepts,introducing the theoretical basis,and combining the characteristics of Internet companies,conducted a deep analysis of the financial risks of Alibaba's merger and acquisition of Youku Tudou.The contents include: the risks to the valuation of the target company before the merger and acquisition,and the financing risks in the merger and acquisition.Payment risk and integration risk for completion of mergers and acquisitions.On the basis of analyzing the causes of the risks,the measures for the prevention and control of financial risks during mergers and acquisitions are proposed,which include: selecting a reasonable M&A valuation method before the merger and acquisition,selecting the financing method and payment method suitable for the enterprise's own development,such as cash payment,After the completion of mergers and acquisitions,such as debt payment or equity payment,the Company will prevent mergers and acquisitions from integrating risks by strengthening business strategy integration and human resources integration.This article hopes to provide a certain theoretical guidance and practical operation suggestions for the Internet companies that will conduct mergers and acquisitions through the case analysis of Alibaba's merger and acquisition of Youku Tudou,reducing the financial risks that the mergers and acquisitions may bring to the company will be the lowest,and enhance the enterprises in the industry.Competitiveness.