Synergy Effect Research On Youku Merger With Tudou

From birth to now China network video industry swift and violent development, andnow the industry facing increasingly fierce competition in.In 2012, as the industry’s top two companies Youku and Tudou were merged, caused quite a stir within the industry.Youku’s M&Awill have a huge impact on network video industry structure and this case will the domestic network video industry M&Aactivity will play a very important reference in the future.This study first reviews the domestic and foreign M&A synergy theory and evaluation method, and analyzes the network video industry background, industry characteristics, trading and Youku’s M&A motivation. At the same time with the method of economic value added (EVA) and EVAPC on Youku and Tudou to evaluate enterprise value analysis before and after M&A, the synergies of this case was calculated, and from the Intangible assets synergies, management synergy, Operating synergy, and financial synergy together four aspects carries on the analysis. Finally concluded that (1) Internet video industry characteristics make Youku and Tudou’s M&A necessity (2) After M&A, the EVA was down, but on behalf of capital efficiency EVAPC is lifted, the explanation to the synergistic effect of M&A (3) Youku and Tudou’s M&A appeared a good reaction in capital market, on behalf of the investors optimistic about the mergers and acquisitions.Through analyzing Youku’s M&A case, in the practice of expectation can process of mergers and acquisitions and patterns and has a profound understanding of the Internet, and the calculation of merger synergies to provide reference and reference. Theoretically using EVA valuation method and the added value of EVAPC to calculation and analysis on the actual data before and after M&A, which provide a new way to evaluate synergies.