A Case Study On The Performance Evaluation Of Alibaba’s M&A Of NetEase Kaola

Since 2014,the domestic M&A market has been growing more and more rapidly.Under the market economy,M&A deals between domestic Internet companies become frequent in order to accomplish the strategic goals of corporate diversification and globalization.M&A has turned into an important means for enterprises to seize market share,optimize resource allocation and achieve strategic goals such as industrial upgrading.However,M&A is also a double-edged sword,which can not only create opportunities for enterprise development,but also bring risks to enterprises.Therefore,assessing and analyzing the M&A performance of enterprises from multiple perspectives and in all aspects will not only enable enterprises to clearly understand the risks of M&A,but also enable them to make reasonable M&A plans.Alibaba’s acquisition of Net Ease Kaola was listed in the "Top 10 M&A Events in China in 2019",which successfully accomplished Alibaba’s strategic goal of acquiring the core e-commerce sector and developing its market in the cross-border e-commerce sector in China.This paper analyzes and evaluates the performance of Alibaba’s acquisition of Netekaola with the help of the event study method and an improved balanced scorecard.This paper is divided into seven main sections.In the first part introduces the background of the paper,the purpose and significance of the research,the content and framework of the research,and the innovation of the paper.The second part expounds the relevant concepts and theoretical basis,which lays a theoretical foundation for the whole article.The third part introduces Alibaba’s acquisition of Netease koala,including the general situation of both sides,the process of the acquisition and the motivation of the acquisition.The fourth part uses the event research method to analyze the market performance of this M & A.By calculating Alibaba’s relevant data,the extent to which Alibaba’s company value or market is affected by this M&A event is analyzed.In the fifth part,the traditional balanced scorecard is combined with synergy effects to determine new dimensional indicators in relation to Alibaba’s M&A of Net Ease Kaola.The financial and non-financial performance of the M&A event is evaluated using the improved balanced scorecard to test the success of the M&A event.In the sixth part,the case study of Alibaba’s M&A of Net Ease Kaola is analyzed to summarize the insights gained from the case study,which will hopefully provide lessons for other Internet companies in their M&A.In the seventh part,we summarize the views of the whole paper and present the conclusions and shortcomings of the paper.