Analysis Of Alibaba M&A Youku Tudou Synergy Effect

With the development of China's capital market,various types of mergers and acquisitions events occurred in the Internet industry.The scale of transactions in the M&A market continues to rise,and M&A transactions are becoming more and more complex.Of course,cases of M&A failures sometimes occurred.Therefore,it is very significant to objectively evaluate the effects of M&A and the synergies generated by M&A.Alibaba's acquisition of Youku Tudou is an important M&A event in the field of online video in China.Alibaba and Youku Tudou are the leading companies in the industry.The synergy between two companies has an important impact on the entire market.The paper studies the synergy effect of Alibaba's acquisition of Youku Tudou,and uses literature research and case study methods to analyze the synergy effects of mergers and acquisitions from multiple perspectives,two companies complement each other.Overall,the company has been improved from the perspective of operation,management and finance.It not only consummates Alibaba's entertainment sector,but also alleviates the current shortage of Youku Tudou,which is conducive to the sustainable development of both companies and the development of the entire industry.Firstly,the paper introduces the background of writing,summarizes related literatures,and elaborates the theories and concepts related to mergers and acquisitions and synergies,as well as the evaluation methods of synergistic effects;Secondly,the article briefly describes the process,motivation and integration of the merger after the merger;Then,the case of Alibaba's acquisition of Youku Tudou was analyzed from multiple angles.The case study method was used to explore the market's response to the M&A event from the perspective of Alibaba and Youku Potato,and analyze the overall synergy effect;and study the business synergies,management synergies,and financial synergies generated by mergers and acquisitions with the financial perspective and the non-financial perspective respectively,and analyze the influencing factors of the merger synergies.Finally,the paper draws the conclusions of the case and summarizes the experience and lessons of the synergy effect of M&A,which provides useful enlightenment for similar M&A events in the future.Previous researches on the synergy effect of M&A in the Internet industry mainly focused on the traditional horizontal M&A events,and mainly focused on the overall investigation of M&A events,there are little research on the synergy of a specific event.The paper discusses the Alibaba's acquisition of Youku Tudou,and analyzes the synergy effect of this merger combined with the influence factors of synergy,and then evaluates the synergies of different categories separately,which provides some reference for future merger and acquisition decisions similar to this case.Therefore,the research and analysis of synergy effect in this paper has important practical significance.