Research On Risk Control Of High-price Merger And Acquisition Of Internet Game Companies

At this stage,China’s economy is developing rapidly,and the development of enterprises is advancing with the development of the economic market.However,in recent years,the phenomenon of high premium M&A occurred in the process of enterprise M&A and reorganization is not uncommon.With the widespread occurrence of such high premium M&A,the risks arising from this phenomenon are beginning to be exposed.As far as the research content of our country is concerned at this stage,most of the scholars’ research on this kind of high premium M&A is focused on the goodwill problem after the premium M&A,but the relevant research on the risk control of high premium M&A is still lacking.In view of the above findings,this paper studies the specific case of Sanqi Mutual’s high premium acquisition of Aurora Network through literature research and case analysis,and makes a deep analysis of the high premium acquisition risk and risk control generated in the process of Sanqi Mutual’s acquisition of Aurora Network.First of all,this paper starts from the research background and significance,analyzes and summarizes the relevant literature at home and abroad,analyzes and summarizes the causes of premium M&A and the research status of M&A risk and control.It also elaborates the relevant theoretical concepts of high premium M&A,determines the research content and methods,and paves the way for this study.Under the guidance of the theory of synergy and conceit hypothesis,this paper introduces and analyzes the case of Sanqi Mutual Entertainment’s acquisition of Aurora Network at a high premium,including the background of the acquisition transaction,the profiles of both parties,the motivation of the acquisition,and the reasons for the formation of the high premium of the acquisition.Then,aiming at the M&A risks and risk control of Sanqi Mutual Entertainment M&A of Aurora Network,the paper focuses on the risks existing in Sanqi Mutual Entertainment’s high premium M&A,and obtains the risk control of Sanqi Mutual Entertainment’s high premium M&A.Finally,combined with the specific case of the acquisition of Evoque Network by Sanqi Mutual Entertainment,it analyzes how Internet game companies implement risk control during the acquisition process,providing a theoretical basis for the acquisition and development of Internet game companies.It can be concluded from the research that the main risks in the process of Sanqi Mutual’s high premium acquisition of Aurora Network include valuation risk,payment risk,financing risk and integration risk.For risk control,the following points should be achieved: first,we should improve the signing of performance commitments,second,we should adopt flexible financing payment methods,third,we should formulate our own development strategies to select M&A targets,and fourth,we should formulate scientific integration plans.Through these four points,we can effectively control risks,improve the success rate of enterprise mergers and acquisitions,and promote the future development of enterprises.