Discussions On The Synergy Effect Of Horizontal M&A Between Youku And Tudou

Economic globalization is an important feature of current world economy and an irresistible trend of economic development.China joined WTO in 2001,which made the development of Chinese economics connect with the development of global economics.With the economic globalization,M&A has become an integral part of each industry.Chinese enterprises have already been in the wave of M&A.They will acquire opportunities and encounter risks.Faced with fierce market competition,those network video companies have been keeping on seeking opportunities.They hope that,through the M&A between enterprises,they can optimize allocation of resources,improve operational efficiency,expand market share.In this way,they can achieve their long-term development goals.Horizontal M&A is one of the main ways of M&A.It can not only show a company's economic strength,but also show a company's market competitiveness.Horizontal M&A between enterprises creates value by synergy effect.Therefore,the synergy effect of Horizontal M&A is an important precondition for the success of Horizontal M&A.This paper also believes that how to achieve the best synergy effect is an important question in the process of Horizontal M&A.Since the scholar Ansoff proposed the concept of synergy effect,the domestic and foreign scholars started to do research on the definition,classification and function of synergy effect gradually.This paper also made a corresponding discussion on these problems.What' more this paper analyzed and discussed the synergy effect of Horizontal M&A in detail,basing on Fred's theory,by the angle of management synergy,operational synergy and financial synergy.Basing on these theories,using literature research method and case analysis method,combining with the current development status of domestic network video industry,this paper explored synergy effect of Horizontal M&A between Youku and Tudou,and hoped that this would be helpful for those network video companies which would do Horizontal M&A in the future.Firstly,this paper introduces the research background and significance,and describes the development status of the network video industry and the situation of Horizontal M&A briefly.Then it reviews and collates the literatures about Horizontal M&A and synergy effect,and puts forward the research ideas and methods.Secondly,this paper summarizes the relevant theories about Horizontal M&A of synergy effect,defines the concept of Horizontal M&A,introduces the concept and basic content of synergy effect,explains the theory of M&A synergy effect theory,market power theory and efficiency theory,and also briefly describes the evaluation method of Horizontal M&A synergy effect.Thirdly,according to the development status of the network video industry and the internal and external environment of the Horizontal M&A,this paper summarizes the reasons for the Horizontal M&A between Youku and Tudou,and generalizes the process of Horizontal M&A,including M & A method,M&A process and integration of M&A.Fourthly,this paper summarizes some problems of synergy effect after M&A in three aspects: the long-term management synergy effect is not stimulated,the synergy effect of integration needs to be improved and the overall financial synergy effect is not enhanced obviously,and then it analyzes the causes of these three problems.Finally,according to above analyses,this paper puts forward corresponding measures to enhance the synergy effect of Horizontal M&A between Youku and Tudou.The first one is that,through the optimization and integration of Youku and Tudou human resources,the advantages of dual-brand platform and the rational use of management resources,it can improve business efficiency and enhance the management synergy effect.The second one is optimizing and integrating the overlap business of Youku and Tudou,integrating the main business of Youku and Tudou rapidly,and increasing market share by taking advantages of complementary resources.Thus,it can complete the business integration.The third one is that,increasing the credit rating of Youku and Tudou,reducing its financing costs and creating liquidity assets combination,to ease the financial pressure.In this way,it can improve the overall financial synergy effect.