Case Study On Merger And Acquisition Of Huya And Douyu

In recent years,China’s Internet live broadcasting industry has been booming,and mergers and acquisitions among enterprises have increased gradually.Among them,the news of the merger and acquisition of Huya and Douyu,two leading players in the game live broadcasting industry,has long been paid high attention by the industry and the capital market.Considering that the merger of the two companies has not been completed,this paper mainly analyzes the value and driving factors of Huya and Douyu merger through the synergistic effect of merger and acquisition,and then discusses the business integration and development direction after the merger.This paper first determines the research background and methods,as well as the research framework,and uses SWOT analysis and other management analysis tools to conduct a comprehensive and in-depth analysis of the industry.Then,this paper discusses the motivation of M&A,the synergistic effect of M&A,and the integration of M&A.After a series of quantitative analysis,this paper analyzes the financial situation of the two companies and the financial characteristics of the game broadcast enterprises.Finally,this paper makes an empirical analysis of the valuation model by using the Internet Dachang,which has similar business,and selects the valuation model to analyze the merged Huya and Douyu in two cases:one is without considering the synergistic effect,the other is considering the synergistic effect.In order to verify the impact of different degrees of synergies on valuation and find a value reference range for investors’ reference,this paper conducts sensitivity analysis on key indicators representing synergies.Exploring the influence of Internet evaluation methods and the impact of synergy on M&A evaluation is the focus of this article.By comparing the evaluation results obtained by various evaluation models with actual results,this article believes that traditional evaluation methods are often underestimated.The DEVA model that uses business data for evaluation will slightly overestimate the value of Internet companies.In terms of valuation,this article believes that synergies can increase the valuation of the combined company.In terms of financial data,the use of synergy to reduce its comprehensive cost rate will maximize the company’s value.It is best not to exceed the comprehensive cost rate.98%.In terms of business data,gaining more monthly active users will maximize the value of the company,and its growth rate should best reach 1.2 times the historical average growth rate.