Research On The Motivation And Performance Of Cross-industry M&A

With the development of the Chinese economy,Chinese companies have increasingly increased M&A activities,and many of them are cross-industry.Compared with mergers and acquisitions in the same industry,cross-industry mergers and acquisitions are more difficult and more risky because of the different fields of operation of both parties.In the case selected in this article,Datang Telecom belongs to the electronic information manufacturing industry.Its integrated circuit design and related industries have developed earlier and have certain advantages in the industry,and government departments have also vigorously supported related fields in recent years.Under such favorable development conditions,there are some enterprises in the industry who choose to conduct cross-industry mergers and acquisitions of online games and other Internet companies.Datang Telecom is one of them.The reasons for this are worthy of further investigation,and the performance of such companies in M&A and whether crossindustry M & A can create value for them are also worthy of attention.Therefore,the research question of this article is: Based on the case of Datang Telecom M&A,it is necessary to conduct in-depth research and evaluation on its motivation and performance.To decompose the research issues,the content of this paper includes: First,what are the motivations for Datang Telecom's mergers and acquisitions.Secondly,what kind of performance changes did M & A activities bring to Datang Telecom.And finally,to combine the merger motivations and M&A performance,analyze whether the purpose of M&A is achieved,and analyze its reasons.Based on the above research questions,the research ideas of this article are: First,summarize the existing research and related theories.And comb the research on the industry status,the parties to the merger and acquisition,and the merger process.Secondly,to combine the motivation theory of M&A and the relevant announcements of Datang Telecom,analysis the motivation for M&A to Yaowan Entertainment.Then,using the event research method and the balanced scorecard method to study and analyze the performance changes before and after the merger,and combined with the motivation of the merger and acquisition,to analyze whether the purpose of M&A is achieved.Finally,we analyzes the causes of performance changes before and after mergers and acquisitions,and makes recommendations to companies implementing cross-industry mergers and acquisitions.The research conclusions of this paper are:(1)The motivation for Datang Telecom 's mergers and acquisitions is to expand its business areas,improve its asset structure,and leverage M&A synergies.(2)Datang Telecom 's short-term M&A performance is good and has been recognized by the market.However,the performance of long-term M&A performance is poor.(3)Combined with the analysis of M&A motivations,Datang Telecom failed to achieve its M&A objectives,mainly due to increased industry competition,inappropriate selection of target companies,and inadequate integration after M&A.The research value of this article is: Through this typical case study of Datang Telecom's cross-industry mergers and acquisitions,summarizing the reasons for the failure of this merger and acquisition,it can provide some enlightenment to other companies that conduct cross-industry mergers and acquisitions.