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Research On The Internet M&A In The New Economy

Posted on:2006-03-09Degree:DoctorType:Dissertation
Country:ChinaCandidate:B ZhangFull Text:PDF
GTID:1116360155958030Subject:Political economy
Abstract/Summary:PDF Full Text Request
M&A activities correlated with Internet industry in new economy is a major research target of this paper. This paper summarizes the disciplinarians and characters of M&A in Internet industry, and investigates the hypostasis of M&A based on the economics angle of view.In this paper, it first analyzes the macroscopic environment, its tendency and the microscopic body—what the network companies has been done, and then discusses on why these behaviors take place under new economy has been made. The paper also analyzes the phenomenon of the competition and the monopolization of internet M&A, and offered many kinds of effective methods used to assess merging targets. Finally an empirical study on relation between the M&A activity and profitability of the internet company of our country is carried out based on the theory analysis.The major conclusions from this paper as follows:Firstly, new economics becomes an important macroscopic background under which M&A in Internet space happens. The phenomena and absurdity in new economics that the classical economics can't explain has greatly influenced the activities.Secondly, Internet M&A bears four characters: first, M&A activities mainly cover four fields that are the field of Internet Infrastructure, Internet Application Infrastructure, Internet Intermedia and Internet Commerce; Second, vertical and hybrid mergers are the primary forms in Internet M&A; third, multinational mergers occurs frequently and the former merger of unequal evolves into merger of equals; forth, there are mainly two modes: One is merging for achieving scale benefit and commercial profitability. The other is merging for acquiring technology and R&D advantages based on the application of Internet.Thirdly, like the traditional enterprise merging, the scale economic theory, the transaction cost theory, enterprise M&A synergy theory, tax effect theory can also explain the M&A in Internet space. Besides, technology, protocols and standards, smile curve are also important factors. The development of Internet and information technology and the change in correlative regulations helps the promotion of the M&A activities.Fourthly, as monopolization becomes popular in Internet industry, we conclude in certain conditions monopolization in the Internet industry can bring more consumer welfare after analyzing the process of net monopolization and deep-seated causation. So the government should relatively broaden control.Fifthly, NPV method, market method and cost method are value-assessing technique aimed at traditional merging objects. So they have limitation when used in assessing the Internet enterprises. The three-step analysis method developed by Mckinsey, amended market-earned rate model, theory earning multiplier-TEMA, EVA value-assessing method, option pricing theory are more suitable for assessing the value of these enterprises. In this paper, the modern value-assessing methods are...
Keywords/Search Tags:Internet M&A, New economy, Valuation assessment, Externality, Profitability
PDF Full Text Request
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