Research On The Synergy Effect Of M & A In The Network Video Industry In China

With the rapid development of the global economy, lots of enterprises take advantage of M & A as a tool to increase market share and scale. At present, although there are lots of cases of M & A at home or abroad, but M & A is not only a simple resource collection, the follow-up of the integration process is more complex, the real number of cases of mergers and acquisitions is very low. It is one of the important reasons for the failure of mergers and acquisitions to ignore the improvement of the assessment process, which will lead to the limited or lack of synergy between the enterprises in the merger and acquisition.China’s M&A behavior is also booming, and has shown a sharp growth trend. This phenomenon is more obvious. China’s online video industry was first born in 2005, after a short and rapid development, has been full of high copyright fees and homogeneous competition. All this reflects are the survival plight of China’s online video industry. Many medium-sized enterprises will be eliminated after failing to pay huge royalties and broadband charges. In order to improve the core competitiveness, since the beginning of 2012, China’s online video industry ushered in the wave of mergers and acquisitions, M&A has become one of the most effective ways to improve the survival of the industry, but the success rate is not high, one of the important reasons for the failure of M&A is the three aspects of M&A.At the same time, in the relevant theoretical research, since Ansoff (Igor-Ansoff-H) clearly put forward what is the merger and acquisition synergies, A lot of researchers have carried out a lot of analysis and research on the synergy effect, but not the same conclusion, which is called the "M & A synergy effect paradox". In addition, the research on the synergy of M & A is mainly for the analysis of all kinds of enterprises, and the research on different industries is less. And in terms of the network video industry in our country, although belongs to the emerging industry, has been in the period of adjustment and transformation from quantitative change to qualitative change. Facing with the introduction of more and more strict laws and regulations related to the government, although it has a large flow but does not bring high profits and continues to bear the high cost of bandwidth and operating expenses, which are unique to China’s online video industry. So this paper analyzes and studies the special background of China’s network video industry, and enriches the research content of the M & A synergy effect.First of all, this paper summarizes the related theories of the synergy effect, and provides the theoretical basis for the analysis. Secondly, recording the specific case of Youku and Tudou, the balanced scorecard is used in the analysis of mergers and acquisitions motivation, and the synergy effect of M & A, such as business, management and financial cooperation, is used to verify the synergy of Youku and Tudou. Finally, in the short term, the merger of Youku and Tudou has got the achievement of synergistic effect, and the key to the realization of the synergy effect lies in the establishment of the M & A plan and the system integration of M & A before the merger.