Research On The Motivation And Performance Evaluation Of Tencent's Overseas M&A Riot Games

With the continuous advancement of the Internet + strategy,the Internet industry has developed rapidly and has become an indispensable star industry.Among them,the Internet game industry has also achieved brilliant achievements.In the process of entering the market for game companies,mergers and acquisitions are an important way to capture the market.This paper selects Tencent Company(Hong Kong stock market listing 00700),the leader of China's game industry,as the research object,and analyzes its motivation and performance in the Riot games of the unicorn company.The article first introduces the background of the two,and analyzes the motives of M&A based on the status quo before the merger,and then the analysis and evaluation by various methods.The performance of Tencent's acquisition of Riot games: First,the short-term performance was analyzed through event research,and the evaluation of Tencent's M&A behavior during the M&A period was studied.The second is to discuss the specific performance of business products through product market research,to analyze the interim performance,and to study the overall performance of the market of the acquired company within 1-3 years after the merger;the third is to analyze the long-term performance through the financial analysis research method,and analyze the financial situation of Tencent before and after the merger,mainly from solvency,profitability,operational ability and growth ability.Four aspects were comprehensively analyzed and analyzed.Fourthly,through the performance comparison method,the performance of Tencent and its main competitor,Netease,was compared horizontally.The performance of Tencent's mergers and acquisitions was further analyzed.Finally,the analysis concluded that the acquisition of Tencent was open to domestic Two foreign markets,still improve themselves The financial ability of the situation has helped,as Tencent's 16-year report mentioned,“It's the acquisition of Riot games that enabled the game's profitability to be supported.” Finally,based on the overall situation of the merger,the paper also made an overall analysis and suggestions on the current merger and acquisition of domestic enterprises.