The Motivation,Mode,Value Creation Of M&A In Listed Companies

With the development of the economic, it’s difficult for enterprises to meet the speed ofexpansion on their own in recent years. As a result, under the background of economic globalization,mergers and acquisitions are adopted by more and more enterprises to improve competitiveness and expandmarket share. Through mergers and acquisitions, enterprises can reduce the development risk, reducemarket entry barriers and optimize the allocation of resources. However, the related theory has beenresearched for many years; the research about mergers and acquisitions is still insufficient, especially inChina. Therefore, combined with the national conditions of China to research the theory has certainsignificance to the development of Chinese enterprises.This paper selects the merger case between youku and tudou to analyze the problems in themerger. As a big change in the network video industry in China, this case will be very worth for us toexploring and researching. So it could provide reference for Chinese enterprises in the future. Meanwhile,we hope to get thinking for the development of network video industry through this case.The beginning of this paper elaborates the research background, purpose, significance, researchmethods and the conclusions structure framework. Then, this paper introduces the concept of mergers andacquisitions and its development course, and summarizes the merger in theory. The main part of the paperintroduces the merger case between youku and tudou, and analyses the reason, mode selection, valueproblem and the risk. Finally, through the combination of theory and the case, the paper will put forwardsome suggestions for the merge of enterprises in China.This paper has the following characteristics in the process of analysis: First, it regards theemerging Internet companies as the research object. Unlike common companies, Internet companies havetheir own characteristics. Through the analysis of Internet company merger, it can provide M&A mode forthe Future Internet companies. Second, through case analysis, it combines theory with practice. Third, thisarticle learns from mature foreign M&A theory and combines it with Chinese national conditions. Maturetheory of mergers and acquisitions is applied to Chinese specific national conditions, and opinions are putforward for the enterprise reform of our country, the integration of resources and the development of large enterprises.Through this analysis, we can see the advantages of M&A business development, at the sametime, can also find out issues in the M&A.