Analysis On The Effect Of Internet Enterprise M&A

Chinese Internet generation later than in Western countries, but it has maintained a rapid pace of development, revealing a huge potential for development. With China’s Internet infrastructure has been constantly improve and upgrade, to further accelerate the industrialization of the Internet, traditional industries and the Internet increasingly interconnected enterprises to expand the scope of cross-border mergers and acquisitions, Internet and traditional mergers and acquisitions activity increased violently. Internet web-based business model, the user links and product channels, the level of activity of network users determine the value of the company.Eastmoney as Internet companies, specializing in vertical financial field, gathering a huge user base and traffic, then the Chinese government to relax regulation of the securities industry, private capital began to gradually participate, Eastmoney opportunities of the time of traditional securities firm acquisitions. Based on the basic situation of both consolidation, mergers and acquisitions background, mergers and acquisitions process Case Study on the Oriental Fortune merger with the Securities motivation to analyze, Eastmoney through mergers and acquisitions to help the acquiring party meet its strategic objective to achieve the Internet brokerage format change. For the evaluation of the effect of acquisitions, using the event study carried out short-term performance analysis of the M & A behavior, through strategic acquisitions and long-term effects of the synergistic effect of the analysis, the results show that the East Fortune announced the merger plan, M & A activity in the short term to achieve a very high cumulative the excess rate of return to achieve long-term business, financial, and management should be collaborative, long and short term have achieved great results, greatly enhance the company’s value, the reaction of the M & A initiative.According to the conclusions of the analysis of this article, this article gives the corresponding countermeasures and suggestions: First, Internet companies should pay attention to the integration of acquisitions after the merger of resources to achieve smooth transition of the industry chain: Second Internet companies choose to clear mergers and acquisitions motive objects, to ensure the success rate of M & a activity: Finally, the Internet mergers and acquisitions activity should follow the law of industrial development, help to enhance the overall efficiency of the industry.