Research On The Merger And Acquisition Of Internet Companies In China

With the advent of the Mobile Internet,the competition between Internet companies has been a long time,the layout around the flow,the entrance and the scene increasingly frequent.The hustle of capital show the giants' showdown attitude,especially ten unicorns'M&A in 2015,like DIDI and KUAID,like a shotgun has aroused thousand wave in the Internet market.And there has an invisible hand behind the M&A:BAT.This round of domestic Internet M&A wave starting in 2012,the Internet giant began to crazy expansion,opend the first large-scale M&A wave in the history of China's Internet.BAT is also being transformed from the "Business Empire" to the "Capital Empire",no one knows where the border of the empire is,people only see the frequent capital operation,satellite-style ecological layout,from the traditional Internet to the "Internet +" from the search,electricity commerce,social to financial,logistics,health,manufacturing,culture...mutual penetration,intricate and complex.Trough the study of domestic and foreign scholars on corporate M&A,we found that:the field of the research focus on the motivation,performance,risk,strategy,and mostly concentrated in the traditional industry,the research on the Internet M&A is very less and stay at the level of descriptive research.Therefore,this paper tries to use the knowledge of platform economics and media management from the perspective of industry development and strategy,to make a normative explanatory study on the wave of M&A of Chinese Internet enterprises.First of all,I reviewed the development history of China's Internet,found that China's Internet presents two patterns:First,from the competition to the acquisition period,the second is to to enter the era of oligopoly.And then I analyzed the causes of China's Internet companies,M&A,then I put forward the view of the Internet business model must be built to the information flow,capital flow and logistics "three streams",and us Alibba's M&A as a sample illustrate this view.And I analyzed the action logic of Alibaba's M&A,found the future development trend.Finally I proposed relevant recommendations and countermeasures.This article mainly answers the following questions:What raised the Internet M&A waves?I believe that the fundamental factor lies in the nature of the Internet platform economy,the characteristics of the network externalities,decreasing marginal cost,increasing returns to scale of the Internet platform economy have to constantly expand their platform to get more users,to create higher value for the original users,and users will always seek the large-scale,civilians of the Internet platform as their carries of consumption.So both,decided the platform enterprises will constantly to extend their business,we called that infinite extension,infinite integration,which is the fundamental power of Internet M&A.Who will be the biggest winner?There are two ways to construct the Internet business model based on the information flow:building value-added services-based platform to extend the multilateral economic business model like Tencent,as well as building information flow,capital flow and logistics like Alibaba.An obvious feature of Internet development is the depth of integration with the industry.The "value-added service"business model is more in line with the virtual economy.the business model of Alibaba is the key to integration with the off line,especially the construction of intelligent logistics system of Alibaba.So I believe that building information flow,capital flow and logistics like Alibab is more in line with the trend,which become the most important weapon of BAT's war,but also is the main starting point of the study.China's Internet will present what kind of trend?First,China's Internet development is from the Consumer Internet era to the Industrial Internet era.Second,if the Internet companies want to become a super platform,must build information flow,capital flow and logistics,the logistics platform or will become the key to competition.Third,Internet is moving from the commodity consumption into the service-oriented consumption.Fourth,the future of business change more and more rely on the new technolog innovation especially the underlying technology.Capital is not cruel,in fact it only represents a rule,and we have to be good at using this rule.Therefore,I hope that through the study of Alibaba's investment and China's Internet M&A wave,from the perspective of industrial development and strategy to figure out the development tend of the Internet.