Research On Financial Issues Of Youku Merging And Acquiring Tudou

Rapid growth of Internet sets off a rush of network videos,which has changed traditional network industrial structure.Since 2006,the network video industry has gotten preliminary development and a large quantity of video websites such as Youku,Tudou and Tecent which have been mainstream media of network videos spring up.In the period,internet video industry has experienced several times of ups and downs;for example,the government department raised access conditions of internet video conditions.By 2010,for better standardize development of network video,the country published laws and regulations in this respect,which promoted video websites to transferred business focus to copyright protection and content construction.Due to high copyright expenses and sharp shrinkage of advertisement income,network video enterprises begin to occupy market shares by enlarging propaganda.However,financial strain and profit shrinkage directly become significant challenge for network video industry,which leads to business difficulty of many enterprises,and then promotes these enterprises to seek solutions by merging and reorganization and enlarging business scale and enhancing competitive strength by integrating,so as to create better business achievements.The paper combines with industrial features and competitive situations of network video industry to analyze the merging motive of internet video enterprises concretely and summarize various risks for merging.Simultaneously,the paper selects Youku and Tudou these two leading enterprises in internet video industry as study object to discuss merging motive,merging risk and financial synergistic effect for internet video enterprises and puts forward risk precautions for merging of internet video enterprises.Finally,the paper also looks forward to development trend of future internet video industry.In a word,merging of Youku and Tudou is a significant merging case in internet video industry of the country and by deeply analyzing the case,the paper desires to offer references for internet video enterprises which have commenced merging or are to commence merging.Simultaneously,the paper concretely discusses merging motive of internet video enterprises and existing merging risk and hopes to evade various merging risks effectively,and then improves core competitive strength of the enterprises,so as to promote sustainable development of internet video enterprises.