A Study On The Influence Of M&A On The Firm Capabilities Of Internet Companies

This paper constructs a impact model of M & A on the ability of Internet companies based on the game thory, and expounds the change of the enterprises' capability after M & A. In this paper, the entropy model is used to quantify the firm capacity into the form of firm entropy. Entropy is composed of capacity entropy and negative entropy, and the enterprise's resource efficiency is set as the measure and evaluation of the firm's capability. First of all, this paper uses the Cournot model and the Stankelberg model to analyze the change of the parameters after the M & A of the Internet firm, leading to different changes in the firm capability in the horizontal M & A between the leader and the non-leader. Secondly, based on the principal-agent model, this paper analyzes the effect of vertical M & A on the capability of the enterprise.Finally, it is found that the vertical M & A will promote the firm capabilities.In the case study, this paper selected a total of six Internet-listed companies as a research object. From the point of view of different industrial characteristics of M & A, the paper studies the Internet enterprise to use the different M & A influence to the firm capabilities. From the micro-level, this study provides a quantitative analysis of whether M & A is conducive to the development of enterprises. The study found that Ctrip and 58 as the leader in their field enterprises, after the horizontal mergers and acquisitions, the enterprise entropy to reduce the ability of enterprises will be improved, is conducive to the development of enterprises, and other companies such as Youku is not the field of online video leadership Enterprises, horizontal mergers and acquisitions, the enterprise capacity change is not significant, can not determine the horizontal M & A to promote the development of Youku.. In the vertical M & A Baidu in the acquisition where to go after the enterprise entropy there has been a significant change, but also reduce the entropy of the enterprise, that is, the ability of enterprises has been increased to better promote the future development of enterprises; and Google and Microsoft, M& A has accounted for a small portion of its revenue, and vertical M & A has not significantly changed the capabilities of Google and Microsoft's businesses, so it can not be judged that vertical M & A contributed to the growth of Google and Microsoft.