The Case Analyses Of The Consolidation Of Youku And Tudou

With the development of Internet technology, Internet company teams continue to grow stronger, and the competition between each other becomes fiercer than before. In order to survive,internet companies must continue to update their technology to improve their market share. But it spends too much time and energy if they do all the things themselves. So an increasing number of them choose M&A to share resources to grow stronger. For instance, large-scale industries can achieve technological breakthroughs by purchasing promising small-scale companies and meanwhile, small-scale companies can gain more market attention by cooperating with large-scale industries. On the basis of both sides agree with each other, their cooperation begin and Internet industry begin a large-scale mergers and acquisitions.Nowadays, the effect of mergers and acquisitions are in the spotlight. After they complete mergers and acquisitions, whether the new enterprise can achieve the original purpose become the most problem we are concern about. The research choose the classic case among lots of M&A events and try to find out how the market react to the event in a short period and in the long run. Through the study of the case, the essay attempt to make suggestions from a risk control perspective.