Research On Serial Mergers&Acquisitions And Value Creation

In recent decade,with the rapid development of the Internet in China,the game market has shown a blowout development prospects.After years of development,as of 2016 China has become the world's largest game market,and it contains enormous potential for growth.At the same time,the Chinese government has also issued a series of policies to regulate this market.Under the circumstances,mergers and acquisitions(M&A)have become one of important means of making the game market bigger and stronger Recent years,with the significant increase in the amount of M&A in the game market,the frequency of game companies' mergers and acquisitions has also gradually increased.This has led to the trend of serial M&A in some game companies,and serial M&A has become an important research topic.Tencent is a leader in the game market,and has been deeply involved in the game field since 2004.Tencent has been concerned widely for its deeply cultivation in the field of game market and accumulation of rich experience.This thesis takes Tencent's serial M&A as the research object,using case analysis,event study,financial index analysis and principal component analysis for normative and empirical argumentation.This thesis will focus on the following issues:(1)Whether Tencent's serial M&A in the game market created value.(2)Combining the value chain theory to analyze the value of Tencent's serial M&A.The findings are useful for other game companies,governments and regulatory agencies.First of all,this thesis integrates the related literatures on the connotation,motivation,performance and risk of serial M&A.Secondly,it defines the related concepts of serial M&A and builds a theoretical framework.Thirdly,introduce the case background and the means to study.When analyzing whether serial M&A can create value,based on the perspective of shareholders,the enterprise value is measured from two dimensions:financial value and market value.When analyzing why serial M&A create value,the value chain theory is combined with the comprehensive evaluation of the interaction mechanism of synergistic effects in various functional activities.Finally,the conclusions are as follows:(1)Tencent's serial M&A process in the game market is divided into exploration period,development period and maturity period;(2)Tencent's serial M&A in the game market creates value;(3)From aspect of value chain,the serial M&A improve competitive advantage,which in turn reflects the increase of the enterprises' value.On the one hand,creating growth points for companies through strategic serial M&A is an important task that the game market needs to solve.This thesis takes China's current situation as the research background,integrates the research conclusions,and summarizes the experience for other game companies.On the other hand,this thesis focuses on the national strategic deployment and proposes relevant policies for the government and regulatory authorities.