Research On The Synergy Effect Of Internet Enterprise Mergers And Acquisitions

In recent years,the rapid development of the Internet industry has become an important force in the adjustment of my country ’ s economic structure and the development of corporate innovation and transformation.This has led to a wave of mergers and acquisitions.The scale and types of mergers and acquisitions are expanding rapidly,and mergers and acquisitions are becoming increasingly complex.Under the background,mergers and acquisitions in the Internet industry are on the rise,and they are particularly active in mergers and acquisitions in the entire industry in my country.However,the success of M&A transactions does not mean the final success of M&A activities.According to the American Business Weekly,the failure rate of M&A has reached 70%.Therefore,the effect of mergers and acquisitions and the synergistic effects they produce need to be evaluated objectively.In addition,most of my country’s research on Internet industry mergers and acquisitions is limited to horizontal mergers or through empirical analysis,and there are few specific case studies between different industries.Therefore,exploring the motivations of mergers and acquisitions in the Internet industry and the subsequent synergies will not only enrich the theoretical research of the Internet industry in my country,but also provide suggestions and countermeasures for the rapid development of the Internet industry in my country.With the development of the economy,people’s consumption level has gradually improved,spiritual consumption has begun to replace the core position of material consumption,and entertainment has begun to become the main market for people’s consumption.In recent years,Alibaba has made investments to improve the company’s industrial chain in order to form a complete ecosystem.Therefore,in order to improve the entertainment sector,it chose to acquire Youku Tudou to fill the gaps in the online video industry.This article analyzes the case of Alibaba’s acquisition of Youku Tudou whether synergistic effects are produced after the merger,and uses literature research and case research methods to explore whether the M&A event has produced synergies from multiple perspectives.First,it discusses the research background and purpose of this article,summarizes the relevant literature and expounds the relevant theoretical basis of mergers and acquisitions and synergies;secondly,analyzes the characteristics of the Internet industry and the status quo of mergers and acquisitions;then,it analyzes Alibaba Describes the motivation and process of the merger of Youku Tudou,introducing the company and financial status of Alibaba and Youku Tudou before the merger,and then specifically analyzes the motivation of the merger between Alibaba and Youku Tudou;,A multi-angle analysis of the case of Alibaba’s acquisition of Youku Tudou.This chapter is the core chapter of this article.Analyze qualitatively from the financial perspective of operation,management,and financial synergy,and judge whether synergy is achieved based on various financial indicators.First,analyze the effects of mergers and acquisitions from various capabilities,such as growth ability and profitability.It also conducted a comparative analysis of the main competitors in the industry,and then explored the non-financial perspective to analyze whether the market competitiveness has been improved after the completion of the merger.Finally,I draw the conclusion of this article.As far as operation,management and financial synergy are concerned,the overall capabilities are showing an upward trend,but there is still room for improvement in the operational capabilities of enterprises,which can increase the control of expenses and better Save and utilize resources in a timely manner,and improve the efficiency of cost utilization.For Alibaba,on the one hand,it has improved its strategic layout and enriched the cultural chain of the entertainment sector;on the other hand,it has strengthened its financial capabilities and reduced its tax burden.For Youku Tudou,it has solved the problem of shortage of funds,provided financial support for operations,and reduced some unnecessary costs.Summarized the synergy effect of the merger and acquisition,and provided suggestions for similar mergers and acquisitions in the future,such as the target company before the merger.Fully investigate and strengthen the integration of resources after mergers and acquisitions and continuously increase market share.