Premium Analysis Of Alibaba's Horizontal Merger Of Youku Potatoes

The update of information technology and big data has provided a prerequisite for the development of the Internet and enhanced the ability of the Internet to create value.All walks of life expect to expand their development and prospects through the Internet,and the fierce horizontal competition between the Internet has made enterprises more eager to improve their competitiveness,which has promoted the merger and restructuring of the same industry.The number of Internet companies is increasing day by day.Some large companies have begun to dominate the mergers and acquisitions.They have acquired companies horizontally to expand the company's territory,gain customer base,expand market share,and build their own ecological chain.M&A in the Internet industry has been on the rise,and M&A events have sprung up in the past,and the premium phenomenon is also significant in these mergers and acquisitions cases.The merger and acquisition premium is a phenomenon of the universality of M&A in the Internet industry.Exploring the reasons for the formation of premium,identifying and controlling the risk brought by the premium is of practical significance for the development of the benign ecological chain of Internet enterprises.This article is divided into six parts.The first part traces the origin and beginning of the wave of Internet mergers and acquisitions,and points out the significance of the research by analyzing the background of the Internet mergers and acquisitions and the status quo in recent years in China.The second part begins with theoretical and literature research,paving the foundation of the theory and research related to M&A,including horizontal mergers,mergers and acquisitions,mergers and acquisitions.Synergies and M&A valuations;the third part is a case study of Alibaba's horizontal acquisition of Youku Tudou.First,it introduces the industry background,including the status of horizontal mergers and acquisitions,the status of Internet mergers and acquisitions,and the development status of the online video industry.The introduction,the final description of the case merger process;the fourth part is the analysis of the cause of the merger premium,first analyze the formation and processing of the case premium,and then the reasons for the premium from valuation methods,payment methods,strategic motivation,mergers and acquisitions synergy,The competition environment and industry characteristics are discussed in six aspects.The fifth part is the risk management of premium.Through the previous research,it identifies the risks that may be caused by the M&A premium,including valuation risk,financing payment risk,goodwill impairment risk,Synergy risk,strategic risk,Purchase integration risk.The control measures are then proposed for the identified risks;the sixth part is a summary of the full text,indicating the conclusions and prospects,as well as the limitations of the research.The dynamics of the Internet industry are still the hotspot of current social development.From the germination to the sunrise stage,continuous mergers and acquisitions are self-improvement of the Internet industry,and horizontal merger is the main means in this industry.In the wave of mergers,enterprises should fully grasp the information of both parties,clarify the strategic plan,conduct a comprehensive valuation of the enterprises before the merger,and rationally choose the financing payment method when the M&A payment,and pay attention to the treatment of goodwill after the merger,and after the merger.The integration of finance,management,manpower and culture.This paper aims to provide some help for the decision-making of Internet companies' horizontal mergers and acquisitions through the analysis and research on the issue of Internet M&A premium,and promote the benign integration and development of the Internet industry.