Study On Market Effect And Financial Performance Of Tencent's Overseas Acquisition Of Riot Games

In the past thirty years,our economy has developed at an unprecedented speed.At the same time,China's consumption concept and consumption structure has also undergone profound changes.With the development of electronic technology and the application of electronic products,more and more people have been exposed to Internet games.After China's accession to the WTO,China has become more closely connected with the world.However,in the development process of China's game industry,it is also faced with such problems as technological innovation and brand service.Therefore,reasonable overseas m&a is a favorable move.After the international financial crisis in 2008,some European and American enterprises were faced with financial difficulties,which was an opportunity for China's game industry to acquire high-quality companies.Chinese Internet companies seize the opportunity of "going out" and actively carry out overseas mergers and acquisitions.On the basis of reading a large number of literatures,this paper collates and analyzes the data,introduces the development process of m&a at home and abroad,the status of the entire Internet industry,and analyzes the influencing factors of Internet games.Taking The acquisition of Riot Games by Tencent as an example,this paper focuses on the analysis of Tencent's long-term performance after the acquisition of Riot Games,and studies the market effect and financial analysis by calculating the performance indicators of Eva.The results show that the acquisition is conducive to Tencent to achieve economies of scale and expand market share.Second,although the acquisition of Riot Games by Tencent does not significantly improve its financial performance in the short term,it will bring considerable benefits to Tencent in the long term with the continuous expansion of the market.The addition of more players addicted to online Games.Based on the research conclusion,this paper puts forward some inspirations related to overseas mergers and acquisitions from multiple perspectives,in order to provide some reference for other Internet game companies' mergers and acquisitions.