Case Study On Financial Risks Of Youku Merger With Tudou

Mergers and acquisitions has become the common ways to enhance the competitiveness of enterprises In the booming economy. Through mergers and acquisitions, companies can rapidly increase market share and achieve complementary resources,etc. Financial risk problem has been an important factor which affect the enterprise mergers and acquisitions success or failure and financial risk throughout in the process of mergers and acquisitions. Therefore, choose a famous case with the financial risk problem to analyze has the very vital significance.With the development of the Internet, China’s video site industry is also growing rapidly.On March 12,2012, Youku and Tudou announced merger together in the form of 100% of the convertible, is a milestone in the course of network video industry development in China. This paper studies the financial risk in the case of Youku M & A. Hope that through this article research, first of all to understand the basic situation of mergers and acquisitions both sides and the whole M&A process of cases. Secondly, on the basis of related theory analysis of mergers and acquisitions in the process of the each stages of the existence of financial risks, then put forward the relevant solutions. Finally, I hope that the analysis of this thesis can be used for reference and inspiration to other enterprises in the network video industry.In this paper introduces the basic situation and the M&A process, then combining with the related theory of mergers and acquisitions,analyze the agent before M& A and value assessment, mergers and acquisitions payment risk and integration after the merger risk in details. The first part of this paper is the introduction, which describes the research background, purpose and significance, research ideas and research methods, research content and structure. The second part is the case of text, this part introduces the basic situation of mergers and acquisitions and describe the acquisitions process. The third part is the case analysis, this part points out the related problems in the case,on the basis of synergy effect theory, scale economic theory, market power theory and enterprise actual data to analyze the motivation of M&A, Tudou’s net value of risk assessment, payment risk and integration risk. The fourth part is the conclusion and enlightenment, put forward four personal suggestions according to existing problems in the case of mergers and acquisitions. Hope to be able to provide a substantial help for the network video enterprise and the industry, also hope for similar enterprises to provide some reference, also hope to provide certain reference for the similar enterprise.