Research On Performance Of Internet Listed Companies After M&A

In recent years,many Chinese concept stocks have been undervalued in the foreign capital market.Affected by the domestic capital market policies and the rapid development of the market economy,many Chinese concept stocks have chosen to return to A-share market.Since 2015,the Chinese concept stocks represented by Focus Media,Wanda Business,China Mobile Games,and Bona have all started the road of privatization,which has triggered an upsurge in the return of Chinese concept stocks.This case selects Perfect World,which was listed on the Nasdaq Stock Market in 2007 and Perfect Global listed on the A-share market as the research objects and analyzes a series of capital operation processes of the acquisition between Perfect Global and Perfect World.Since the subjects of this case study are all Internet companies,this article also briefly analyzes the overall status and characteristics of Chinese Internet enterprise mergers and acquisitions.This article uses the case study method to analyze the performance of the acquisition behavior for listed companies from the three aspects of short-term financial performance,medium-long-term financial performance,and innovative performance.Among them,direct observation and event research methods are used to conduct short-term financial performance studies.Use financial indicators such as profitability,solvency,and operational capabilities to study long-term financial performance and the improvement status of this acquisition to the company.And it further pointed out that M&A lead to the difference between long-term and short-term financial performance and improve innovative performance.The successful merger between Perfect Global and Perfect World achieved a powerful combination of the two major companies' video and game businesses.And it completed the synergy effect and IP linkage effect.This is a classic case in the M&A market and Internet companies.The case study in this paper has provided experience for Chinese concept stocks returning to A-share market to a large extent.And it provides effective suggestions for Internet companies to increase M&A performance and increase innovation investment.