Research On The Synergistic Effect Of Tencent Literature's Horizontal Merger And Acquisition

As one of the effective ways of enterprise development,M&A is a complicated process.The guidance of theory and the support of practice are indispensable for M&A.The real determinant which brings economic benefits to the enterprise is the synergy generated during the integration process after M&A.How to enhance the synergy effect of enterprise mergers and acquisitions and maximize it is an urgent problem in academic circles and practice.However,the theoretical research on synergy effect in China is still not mature and has certain limitations.In view of the importance of synergy,strengthening research and analysis on related topics has certain practical and theoretical value for academic research and practical guidance.The case of Tencent Literature's horizontal merger of Cloudary has sufficient representative significance and research value.China Literature,which was jointly established by the two,achieved synergy and became a leader in the network literature industry.The merger has completely changed the original pattern of the online literature market and has had a profound impact on the development of the industry.Combining with the characteristics of the network literature industry and the related theories of synergy,this paper supplements the case analysis method and the literature research method,and builds a evaluation system including financial indicators and non-financial indicators for the case of Tencent Literature's M&A of Cloudary.The paper details the basic situation of Tencent Literature and Cloudary,motivations and subsequent integration measures,and analyzes the synergy effect of mergers and acquisitions from three aspects: business synergy,financial synergy and management synergy.Finally,this paper summarizes the effective experience and inspirations of the case.Tencent Literature takes into account the strategy of cost leadership and differentiation.Through the economies of scale and complementarity,it has enhanced the company's comprehensive competitiveness and bargaining power,developed new products and new markets,and is committed to building a pan-entertainment industry chain.Tencent Literature also attaches great importance to the retention of talents and the integration of culture.These experience and inspirations also have certain reference significance for M&A activities of other companies.