Research On Risk Identification And Risk Prevention Of Network Video Enterprise Merger

There is a new economic phenomenon in the development of market economy,which is a wave strategic merger.Mergers and acquisitions base on superiority industries of both sides.According to the optimization of resource allocation and appropriate to strengthen the main business,mergers aims at achieving industrial integration,resource complementary and the purpose of increasing new value.Since the second half of 2011,under the high pressure of the operating costs and profitability,the Chinese online video industry's mergers and acquisitions happen in rapid succession,from "crowded" to "vertical and horizontal",each video websites start the mergers and acquisitions with rivals,which can not represent the end of industrial mergers,on the contrary,the network video industry's competition is more intense.In post-MA period the game between online video industry has only just begun.From 2006,Chinese online video market:has experienced several change radically in the development of seven years.Affected by the increase in the.hreshold of the industry and decrease in venture capitalinvestment,domestic network video industry,was in development route of spending huge sums of money to grab market share.For a moment,it becomes a general state of the industry to have operating losses.In September 2011,China's leading real-name social networking internet platform acquired 100%of 56 network.In May 2013 Baidu acquired of PPS video business.In October 2013,Suning and Hony Capital holding by Lenovo have the acquisition of PPTV74%stake.The strong union was used to be thought of a silver bullet to solve the plight of the video industry,but few industry has tasted "the sweetness" for real,which fully illustrates the high risk of corporate mergers and acquisitions.As a new industry of Internet video companies,since it starts,it has experienced the outbreak of the industry,the downturn as well as several stages of the listing boom,and gradually moved towards the upgrading of the industry adjustment period.This paper attempts to use the method of typical case analysis and financial indicators compare,to reveal the possible market risks and analyze the preventive measures to reduce the risk,during the period of domestic video industry's mergers and acquisitions.In the process of network video development,the paper could use to provide some theoretical guidance and practical suggestions to solve problems and offer help of future network video industry mergers and acquisitions.