| Chinese internet companies improved rapidly, after the enclosure movement, it is now entering the stage of the neatening. The emergence of the internet economy represents a new stage of information technology revolution. Along with 10 years development of the internet and the preliminary "burn dollar" of the bubble economy, the internet has entered the second stage of economic development summit—mergers and acquisitions (M & A). Numerous small-capital and small-scale internet companies merged each other or were purchased by large companies, the companies with no scale or no distinct advantage of internet would finally be eliminated.The research of M & A causation and performance of listed companies both in domestic and abroad have already matured, but internet industry M & A is temporarily lack of strong empirical research. Only a few of Chinese large-scale internet companies listed in America and Hong Kong. Their M & A started in 2000, after small-scale non-listed company merger in the early stage, M & A were gradually escalated. The internet economy was filled with M & A tide, facing a new economic situation. Accompany with a gradual increasing in the number of M & A, the amount of transactions grows rapidly increase. No matter what kind of acquisition for these companies exits, the reasons are due to expanding, compensating each other's advantages and gaining clients or business license. This paper collected 50 M & A samples occurred in 16 overseas Chinese internet listed companies, and used empirical analysis of Cumulative Abnormal Average Return analysis method (case method). The conclusion are the M & A brought profits in a certain period within 30 days former and 30 days posterior, particularly in three days before the incident, However, 26 days after the incident, earnings yield had a slight downward trend. It has an approximate conclusion with the research of others international listed companies, the CAR is positive, and the social benefits are uncertain.Through the research, I make some conclusion. The M & A of Chinese internet companies brought certain profits in a short term. To other related groups they also had certain advantages, such as improved the quality of listed internet companies, maintained the stability of society and made market lively. M & A is still in the early stages of development, and it has great potential improvement. However, whether the M&A based on different motivation could expand to the whole society, lie on the acquired company improve its management and make financial synergy effective to improve the company's performance, produce incremental benefits. Otherwise the M & A would be just a game of value redistribution, the function of securities market allocation can't carry out, net social benefit of M & A may be zero or even negative. Whether the deal produce profits for the merger company ultimately depends on purchase motivation and decision-making mechanisms. Finally, this paper advise that the government and regulatory agency should support Chinese internet venture plate, inhibit the bad motive of M & A, enhance the scientific decision-making of M & A and at the same time, we must continue to deepen the study of the internet M & A. |
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