A Case Study Of Alibaba M&A YOKU TUDO

With more and more Chinese enterprises went to overseas listing,in the "Internet +" and large data age,the importance of the Internet to the national economy and people's lives has gradually become apparent.Nowadays,China's Internet business competition is in the white-hot stage,more and more companies realize that if you rely on your own strength,has been unable to adapt to the complex competitive environment,the single business project can not meet the market demand,but also not conducive to their own long-term development,so the Internet companies through the merger to expand the scale of enterprises and business scope,enhance the competitive strength,seize the market share,in order to achieve sustainable development of enterprises.October 16,2015,Alibaba announced the acquisition of Yoku Tudo,they are the leading enterprises of China's E-commerce and Network Video Industry,the merger changed the industry structure directly,had a significant meaning in the development of China's Internet companies,caused wide attention at home and abroad.The article took Alibaba M&A Yoku Tudo as a basic case,first of all,combing the theoretical knowledge and research literature on the motivation and performance of M&A,on the basis of summarizing the characteristics of Internet industry and the status of M&A,specifically analyzed the Alibaba's merger motives;Secondly,summarized the various aspects integration's content and measures of both sides;Again,using incident research method,analyzed the market reaction of both sides in the window period,while using financial indicators analysis,comparative analyzed the financial performance of Alibaba before and after the merger,and combining with EVA performance indicators to determine the financial synergies brought about by M&A to Alibaba whether to play,comprehensive evaluated whether the acquisition had achieved the desired results;Finally,from three angles on the combination of strategic development needs,selecting the appropriate M&A objectives and carrying out the effective integration work,to provide empirical inspiration for the Internet companies participating in M&A.Through the above analysis,this article found: Alibaba based on their own strategic needs,chose Yoku Tudo as M&A object,which was match with its size,external environment and corporate culture,Alibaba had taken the integration approach of resource's complementary and compatibility,so that the personnel,business and corporate culture andother aspects of both sides,achieved a comprehensive integration,had made the positive market reaction after M&A and increased the shareholder wealth,improved the capability of operating,profitability and development,EVA value was always positive and overall upward trend,indicated that the motives of both sides could be achieved,the synergistic effect had been initially reflected,improved the market competitiveness of Alibaba,which was a successful Internet M&A.