Research On The Motivation And Financial Performance Of Overseas Mergers And Acquisitions Of Internet Enterprises

China's economic rise into a world power cannot do without the rapid development of capital market.In recent years,with the development of economy,it has been difficult for enterprises to meet the needs of its rapid expansion by solely relying on themselves.Therefore,due to economic globalization,more and more enterprises,particularly the Internet enterprises,resort to mergers and acquisitions to improve competitiveness and expand market share.Through acquisitions,enterprises can reduce the development risk and market entry barriers,and optimize the allocation of resources.However,in China,the way for mergers and acquisitions is still single,preventing them to become bigger and stronger.And over the years,there's been little theoretic basis of overseas mergers and acquisitions of Internet enterprises.The thesis,under this background and on the basis of the state conditions,discusses overseas mergers and acquisitions through a case study on the acquisition of iQiyi by Baidu.Combining theory analysis and case study on Baidu's acquisition of i Qiyi,the thesis discusses the motivation and financial performance of overseas mergers and acquisitions of Internet enterprises.The thesis carried out the research in five parts.The first part introduces research significance and background,and summarizes literature at home and abroad,which helps build research thoughts and methods and research framework.The second part is a theory summary of the motivation and financial performance of Internet enterprise mergers and acquisitions: it first discusses the significance and motivation of mergers and acquisitions,and then the concept of financial performance and evaluating indicators that provides theoretic basis for Part Four.At last,it discusses some theories on overseas mergers and acquisitions like synergistic effect,scale economy and diversification.The third part is a case study on the acquisition of iQiyi by Baidu,including the introduction of the two parties,the reason of the acquisition,the scheme design and the implementing process.Baidu's acquisition is affected by the enterprise's industry environment.Therefore,it takes diversification operation to start new business quickly,and produces synergistic effect by taking advantage of resources complementary.Also influenced by macroeconomic factors,Baidu has to adjust their goals and strategies.Under the support of macroeconomic policies,the enterprise finally makes the pace of overseas mergers and acquisitions.The fourth part analyzes the motivation and financial performance of the acquisition.The motivation includes seizing market share,IRS for scale expansion,and centralized management to strengthen synergies.Then,the thesis compares 4 kinds of abilities before and after the acquisition-profit earning,operating,solvency and growth-to discuss Baidu's financial performance of overseas mergers.Research indicates that the enterprise's net profit rises while earning capacity declines year by year.Its operating efficiency becomes stable while operating indexes show good performance.Its short-term solvency pressure is released and becomes more tolerable towards risks.Lastly,its scale effects reveal,leading to sustainable development.The fifth part discusses revelation and suggestions.By summarizing the case of the acquisition,the thesis draws experience and lessons and put forward the suggestions: if an Internet enterprise aims at overseas acquisition,it has to take advantage of government policies,and draw up feasible acquisition plans and effective merger measures.On the basis of various literatures,this thesis,combines theory and case research and discusses from the perspective of M & A subject,analyzes the motivation and financial performance of the Internet enterprises overseas mergers and acquisitions by a combination of quantitative and qualitative,empirical research and normative research.The case is both particular and universal.The case study will help you gain a better understanding of overseas mergers and acquisitions of Internet enterprises and provide reference for possible mergers.The conclusion of the study shows that after the Baidu in the acquisition of iQiyi,the financial indicators have improved,but there are still individual indicators in a state of decline.At the same time,the case study is expected to arouse thoughts on the development of online video business.