Research On The Effect Of M&A Between Different Domains Of The Internet

In recent years,China's Internet enterprises have developed rapidly and made great contributions to the development of the national economy.At the same time,the development of Internet information technology and the adjustment and optimization of the national economic structure and industrial layout also provide good policy,economic and technical environment support for the development of Internet enterprises,which makes the scale of operation of Internet enterprises expand continuously.In order to further expand the scale of their own development,broaden the scope of business,in order to achieve the sustained high growth of their own profits,more and more Internet enterprises choose to achieve this development goal through cross-domain mergers and acquisitions.Through cross-cutting mergers and acquisitions,Internet companies can On the basis of its original business,it can expand its business scope to other industry fields,extend its own business,and can strengthen the competitiveness of the new industry business acquired through the help of its own Internet technology and business advantages,and then improve its market competitiveness as a whole.Alibaba Group,as an Internet giant enterprise in China at present,has continuously expanded its own business in recent years by virtue of its scientific business model,advanced Internet information technology and strong capital strength.Through the implementation of cross-domain mergers and acquisitions,it has continuously expanded its own business scale,broadened its own business scope,and the continuous growth of business revenue,which has become an Internet enterprise a model of successful cross-domain mergers and acquisitions in the industry.Therefore,the research on the cross-domain M&A effect of Alibaba,deeply analyze the way and mechanism of its M&A effect,which undoubtedly has a very important reference significance for other Internet enterprises to implement cross-domain M&A.Based on this,this paper takes Alibaba acquisition hungry as an example,using the literature data method to summarize and summarize the previous literature research,combined with the M&A motivation theory,M&A synergy theory and signal transmission theory to clearly define the concept of M&A and M&A effect.On this basis,the case analysis method and the event research method are used to analyze and study the process and motivation of Alibaba M&A hungry,and the key index analysis method is used to study the M&A effect of Alibaba M&A hungry from three dimensions: financial effect,non-financial effect and capital market reaction.Among them,the financial effect mainly revolves around the growth ability,the debt service ability The non-financial effects mainly focus on acquiring take-out market share,perfecting Alibaba retail system and logistics system,and the radiation effects.The capital market response mainly focuses on the accumulated excess return rate,stock price volatility based on overvaluation and increasing the competition of Internet enterprises in capital market.Research shows that Alibaba has both positive and negative effects on hungry mergers and acquisitions.Among them,the positive effect is reflected in theimprovement of growth ability,the expansion of take-out market share,the improvement of retail and logistics system,and so on,to achieve the purpose of strategic M&A.Negative effects Should be reflected in the merger and acquisition after the profitability of the company,operating capacity and short-term debt capacity has declined.Based on the relevant research results,in the future,in the process of cross-domain M&A of Internet enterprises,we should also objectively and dialectically analyze the M&A effect of Alibaba M&A,and then formulate scientific M&A measures,that is,reasonably estimate the ratio of operating income to current,further clarify the M&A target before M&A,at the same time,improve the valuation accuracy,avoid the stock price volatility caused by overvaluation and the negative impact on investor confidence.On this basis,we should strengthen strategic integration and enhance market competitiveness protect the steady development of enterprises after M&A.