The Financial Synergy Effect In M&A Study Of Network Video Enterprise

As the world economy and the development of capital markets, mergers and acquisitions has gradually become enterprise to optimize the allocation of resources and important way and means to seek capital expansion. Under the influence of the world wave of mergers and acquisitions, our company with the stable status and strong financial strength has also frequently implemented M & A activities in China, which is also a hot spot in the academic circles. The financial synergy effect is the key component of the synergy effect, and the pursuit of financial synergy effect is one of the main motives of the corporate mergers and acquisitions in China in recent years. It is also the key factor to measure the success of M&A activity. Therefore, the study of the financial synergy effect of M&A is conducive to the promotion of the implementation of the company’s acquisition strategy, and enhance the competitiveness of the company.In this paper, using the method of literature and case study method, the paper analyzes the financial synergy effect of the merger. Firstly, the paper introduces the research background of the financial synergy effect of the network video industry。By using the method of literature analysis, the research status at home and abroad was summarized, the related literature were sorted out, and the purpose and significance of the research were obtained. Then it gives the definition of M & A and the financial synergy effect of M & A, expounds the theory of M & A motivation related to financial synergy, which provides a theoretical basis for the following research. Then, using case analysis method, based on the network video industry mergers and acquisitions with representative and influential in the wave of mergers and acquisitions—the Acquisition of Todou by Youku as the research object, it uses existing Synergy effect theory of M & A and analyses the performance changes of the merger from the six aspects in detail. After the in-depth discussion, which is relying on the financial index, i have come to the conclusion that the financial synergy has not been fully played. Then it finds out the reason of the problem and gives the appropriate suggestions for how to make full use of the financial synergy effect. Furthermore, it provides the theory and data support for the study of network video enterprise merger. To be conducive to the implementation of the strategy of mergers and acquisitions in China.As can be seen, through above research, the combination of the premise and the way is the rational choice of each other, is the inevitable result of market competition, and horizontal mergers and acquisitions can take advantage of economies of scale, but because of the asymmetric information, the risk of valuation, the integration of the M & A and the limited time, it can not achieve the desired effect, and the synergy effect of M & A is not fully realized.