Research On The Motivation And Performance Of Alibaba’s Acquisition Of Netease Koala

Under the premise of the continuous development of emerging Internet technologies,domestic Internet enterprises have ushered in new opportunities for development.In recent years,many domestic Internet companies have attempted to obtain new market resources at home and abroad through mergers and acquisitions,so as to achieve diversified development.In 2019,a major event in the cross-border e-commerce industry was Alibaba’s acquisition of Netease koala,with an acquisition cost of up to US $2 billion.Through this event,Alibaba closely combined tmall global and Netease koala,and since then has more than half of the share in the domestic cross-border e-commerce market.Many experts and scholars call this event "the first case of cross-border e-commerce M & A imported from China".On the one hand,this paper analyzes the role of M & A in the development of Internet companies,on the other hand,it provides some practical basis for the development of M & A theory.This paper selects the case of Alibaba’s acquisition of Netease koala,analyzes the motivation of the acquisition from the macro motivation and micro motivation,and finds that the macro motivation includes the support of national policies,the elimination of competitors,diversified operation and the promotion of industry capital.The micro motivation mainly focuses on seizing market share,obtaining synergy and improving strategic layout.Analyzing the M & A performance from three perspectives,it is found that the M & A has strengthened Alibaba’s management and operation coordination ability,optimized the market share of cross-border e-commerce,and improved Alibaba’s profitability,solvency,operation ability and comprehensive value of the enterprise.At the same time,the negative effects of the M & A can not be ignored,mainly reflected in the negative market response,Resource integration leads to the rapid increase of management costs.On the whole,Alibaba’s acquisition of Netease koala is a successful case.The reference significance for other companies is to first select the appropriate company resources as the acquisition target,so as to achieve synergy;Secondly,after the acquisition,paying attention to the merger and optimization of various resources can improve the company’s management and coordination ability.Another important thing is to make a reasonable value evaluation of the target company and select a reasonable payment method.