Analysis Of M&A Strategy Of Internet Enterprises Based On Financial Perspective

Along with the rapid development of the modern Internet industry and the continuous improvement of residents’ cultural and living standards,Internet game companies have clearly become a major subject in China’s social and economic fields.In recent years,under the objective development of mobile Internet technology and the objective requirements of the company’s own development,China’s Internet game companies have entered a climax of mergers and acquisitions.The determination and planning of the M&A strategy is the key to the success or failure of M&A.Enterprises conduct strategic mergers and acquisitions based on their own strategies.Faced with different financial and financing risks,companies will choose the payment method that is most beneficial to them.For example,in the case of sufficient funds,enterprises can use direct payment in cash,and in the case of large amounts of M&A payments.Enterprises can also choose a combination of cash payment and stock payment to alleviate financial pressure.For the degree of realization of the company’s M&A strategy,it is necessary to use a special method to analyze the performance changes.Based on the research status of current scholars’ M&A issues and the comprehensive literature on corporate M&A strategies,this paper takes the four major strategic M&A activities of Zeus Entertainment as a research case,from the selection of M&A objects,mergers and acquisitions,mergers and acquisitions.Types and strategic motivations based on long-term planning of the company,focusing on the analysis of the M&A strategy adopted by Zeus Entertainment for Avazu,Weiaipu,Miaoqu Game,Leishang Technology.Zeus Entertainment mainly seeks users,enhances technology research and development capabilities,broadens overseas markets,enhances product visibility,and extends upstream and downstream industry chains as its overall M&A strategy.After that,through the case study,the performance analysis of the four strategic M&A activities of Zeus Entertainment in 2015 was carried out,and the impact of M&A behavior on the financial status of Zeus Entertainment was analyzed.The case analysis shows that through strategic mergers and acquisitions,Zeus Entertainment has fully completed the M&A strategy at the beginning of its merger and acquisition,that is,horizontally enhancing the professional level and vertically expanding the industrial chain to form its own advantages.Through research,this paper puts forward the following suggestions for the M&A strategy of Internet game companies in M&A:First,we should carefully select the M&A objects,try to choose enterprises with certain advantages and relatively stable financial status;secondly,the M&A motives of enterprises must conform to their own long-term Planning,especially the management can not only make short-sighted behaviors for the sake of the moment;third,Internet companies must choose the appropriate payment method according to their own financial capabilities;Fourth,enterprises must be alert to the "goodwill" thunder.In the end,after the merger,the merger and acquisition party must actively promote the integration of enterprise business,and allocate resources through the group to form the scale advantage of experience sharing and resource sharing.