Research On Merger And Acquisition Strategy Of Internet Enterprises

With the rise of Internet wave and increase of national and international Internet enterprises,M&A purchase among them becomes increasingly frequent.Due to various scale in Internet enterprises and low concentration ratio,a large number of companies attempt to realize the largest market share in way of M&A,which can reach the profit maximization and make business performance keep increasing.There were enormous cases of M&A in international firms,while they fail to obtain deal profit in the end after M&A.National firms were started later than foreign ones,so they lack rich experience,which results in lower rate of success in M&A cases.The vital reason is that they did not develop effective and viable strategy by core competence of corporate and their own characteristics.Therefore,based on the strategic theories of business M&A,the article mainly studies the successful case that Facebook purchased WhatsApp,analyzing M&A strategy of Internet enterprises.Firstly,the passage briefly illustrates research background,meaning,content,methods,technological routes and innovative points.It introduces the theories,including enterprise M&A,motivation of M&A,M&A strategy,which laid a solid basis on it.It also reviews the development history in national and international Internet enterprises,summarizing the characteristics of internet enterprises.Then,M&A strategy in Internet enterprises was analyzed,including analysis on motivation of M&A and M&A strategy,the choice of target enterprises and integrated strategy of Internet enterprises.Finally,case analysis method is used to analyze Facebook of Internet enterprises,including systematically analyzing and studying lots of M&A cases of Internet enterprises,like Facebook purchased WhatsApp.M&A strategy of Facebook is systematically analyzed,such as motivation of M&A,the choice of M&A strategy,the choice of the target enterprise and implementation of M&A strategy.By a series of M&A operations,Facebook has made up their weak point within business,integrating strategic structure,occupying market share,absorbing talents,introducing advanced technology and so on,which tremendously upgrades business core competitiveness and extremely improves business economic benefit and values overall.