Research On The Performance Of Tencent's M&A Of Supercell

As the degree of economic globalization continues to deepen,more and more companies are beginning to pursue a global development strategy,and strive to become a global enterprise,and overseas mergers and acquisitions is an important way to achieve this goal.However,although overseas mergers and acquisitions can help enterprises explore overseas markets,promote the international transformation of enterprises,adjust the business structure of enterprises,reduce market risks,complete technological upgrading and enhance corporate competitiveness,but the differences in politics,economy,culture and law.And uncertainty may cause huge losses to the company's overseas mergers and acquisitions.Therefore,it is necessary to strengthen the research on the M&A performance of enterprises,so as to draw lessons and provide relevant reference and suggestions for enterprises to implement and respond to overseas mergers and acquisitions.China's game industry has developed rapidly in recent years.China's game market has also become the world's largest game market.However,due to various factors,although the market size has continued to grow,the growth rate has gradually slowed down..And the advancement of technology has driven a variety of new mobile electronic devices to spring up,so that players' demand for games has become more sophisticated and diversified,which will make the development of the game industry more diversified.These changes are driving the strategic transformation of many game companies.At the same time,in order to promote the implementation of the global development strategy,accelerate the layout of overseas markets,obtain excellent talent teams and quality products,and enhance their professional capabilities in product development and technical support,game companies also urgently need to break through various overseas mergers and acquisitions.Limitation and restraint.Therefore,strengthening the overseas M&A research of game companies conforms to the current development trend of the game industry,helps to promote the development of China's game industry,and enhance the international competitiveness of Chinese game companies.As one of the successful game companies in China,Tencent has been a frequent and effective overseas merger and acquisition is an important means of its continuous development.After completing the acquisition of game companies such as Epic Games and Riot Games,Tencent has established its leading position in computer client games worldwide.In order to achieve the same excellent results in the field of mobile games,Tencent launched a merger with Finnish mobile game developer supercell in 2016,spending $8.6 billion to acquire its 84.3% stake,and successfully succeeded in the world's most successful hand.Tour developers have their income.This acquisition has created a record of M&A in the gaming industry and is Tencent's most significant business event in recent years.Therefore,the research and analysis of the representative event of Tencent's acquisition of Supercell can provide valuable suggestions and meaningful references for overseas acquisitions of other game companies.This paper selects Tencent's acquisition of Supercell,a case that has significant influence in China and the global game industry,and analyzes the reasons why Tencent chose to acquire supercell and the reasons why supercell agreed to be acquired by Tencent.At the same time,using the event research method,financial index evaluation method and non-financial index evaluation method to analyze the performance of this merger from various aspects,it is concluded that the short-term benefit brought by this merger to Tencent is not obvious.However,in the long run,this merger complies with the development trend of the market,conforms to Tencent's future development strategy,and enhances Tencent's share and popularity in the global game market,which will bring considerable returns in the future.At the same time,based on the research and analysis of this case,this paper puts forward five inspirations for overseas mergers and acquisitions of game companies: 1.Combine enterprise strategy to carry out M&A activities;2.Carefully choose the merged enterprise;3.Choose a reasonable M&A method;4.Focus on resource integration after mergers;5.Focus on national policy orientation.