Research On The Performance Of Merger And Acquisition Of Strange Companies

As mobile terminal equipment science and technology and the rapid development of artificial intelligence,China’sInternet population continues to grow.As of February 3,2021,China Internet Network Information Center（CNNIC）released the news that the scale of Chinese netizens has reached 989 million,year-over-year increase of 9.45%,the Internet penetration rate reached 70.4%,and is gradually becoming an important pillar industry of China’ s economic development.In this era,the advantages brought by the increase in population are slowly disappearing,and the competition in the Internet industry has developed to the most intense stage.Under this background,many large Internet enterprises realize that it is difficult to adapt to the complex competitive environment only by fighting alone,and they no longer content with the development in the field of a single business.Instead,they want to find new development opportunities through mergers and acquisitions.They use M＆A toimprove their development rate,at the same time to extend volume growth and promote the position in the industry.But M＆A will have a certain risk,whether can achieve the desired effect after M＆A,and successful enhance the value of enterprises,become the focus of corporate stakeholders.MOMO company as a focus on mobile Internet services company,in early 2018,spent more than$700 million acquisition of its rivals sound out a 100%stake in the company.This event has aroused widespread concern in terms of capital size and influence.After extensive review of the data,this paper sorts out the research results and related theories related to the M＆A motivation and M＆A performance as the research basis;then,the M＆A exploration company of Momo Company is selected as a case,because the M＆A activity has been completed,so its financial performance after the merger is worthy of our analysis;then,based on the theory of economies of scale,the theory of synergy effects and the theory of market forces,starting from the financial data of Momo in the past five years,using the financial indicator method,using the data of financial statements from solvency,operational ability,The four dimensions of profitability and development ability are analyzed in detail the financial performance before and after mergers and acquisitions,and the non-financial indicator method is used to study whether Momo’s M＆A goals have been achieved;then,according to the unreasonableness in the M＆A process,corresponding improvement opinions are proposed,hoping to provide theoretical basis for Momo’s future avoidance of M＆A risks and improve M＆A performance,and also provide reference for M＆A in the social industry of Strangers.