The Influence Of Business Combination Of Profitability Analysis

Along with the popularity of the Internet in recent years,China's Internet users continue to expand the scale,The Internet is no longer just a source of access to information,gradually become more diversified and entertainment.As of the end of12 2015,the size of China's Internet users reached,the Internet penetration rate of6.88%,Network video users of the scale of the number of users,the use rate of 5.04%.It can be seen that the demand for Internet users in China has increased dramatically in the next few years the size of the industry as a whole also maintained a rapid growth rate.This makes the competition of China's video industry enterprises gradually increased,Made in recent years,the frequent emergence of online video industry giant enterprise acquisition and merger of other small and medium video companies,Domestic Internet industry seems to be spent after a wild desperate struggle,began to more and more had to find opponents together to form a giant aircraft fleet to dominate the market.The ultimate goal of the enterprise is to profit,Different enterprises from single handedly to dominate the merger,profitability is ascension for merger enterprise is not a certain result,depending on the enterprise's own situation and industry will produce the corresponding difference.But for some emerging industries or high quality industry,such as the Internet industry,medical industry,education industry,such as merger will improve profitability will need to be further explored.The process is that they continue to expand,to get more resources,and constantly enhance the strength in order to obtain more profit.So this paper chooses the China are representative of video sites,Youku and Tudou as the case for analysis before and after the merger,compared concrete before and after the merger of profitability changes were compared and analyzed,to demonstrate the merger after the profitability have improved.By reading before the scholars at home and abroad for business before and after the merger profitability research report found that most of the enterprises in the post merger profitability has improved,operating income,net interest rate and other indicators have been greatly improved,and can combine the enterprise to realize the coordination effect and scale effect,but these are mostly the results the traditional industry after the merger.So this paper selects the case analysis of non traditional industries,the Internet video industry,using the research method of other scholars,and youku.com and tudou.com consolidated financial statements based on the analysis of the research on the profitability and capacity ability comparison,and the longitudinal analysis at the same time and the music industry net horizontalcomparison,reflects the characteristics of the full range of case studies,in order to determine how the effect of enterprise merger on the Internet video industry.The analysis of case study results show that,first of all,combined with youku.com tudou.com made its market share has been further improved,the two combined account for nearly 60% of the domestic video website industry market,and this data is being further expanded;secondly,after youku.com and Tudou merger before merging it with respect to and its business cost has been greatly reduced,before the merger of two companies to buy copyright,buy broadband and other equipment,after the merger of the two resources can be shared,to achieve the integration of resources to achieve the scale effect,greatly reducing the cost;further,industry leading enterprises to merge standardized integration of drive whole industry will play positive role,avoid the video website industry have low barriers to entry,disorderly market competition means,problems such as poor,to avoid vicious competition.Finally,based on the above viewpoints and the Detailed comparison of the text,the final conclusion is: for the Internet video industry,the merger of Youku and potatoes network in terms of profitability in the short term there is no significant effect.This article uses the case study method to carry on the data analysis,in view of a specific enterprise merger event to carry on the research,therefore the conclusion is more suitable for the company's situation.