Analyzing The Motivation And Performance Of Tencent Merging Game Developer Supercell

The operation and development of the enterprise in a rapidly changing market environment,enterprises and their competitors are developing at the same time.So how to grasp the opportunity,grabing market share before competitors becomes very important.Merger and acquisition is one of the ways in which enterprise rapid growth.With the improvement of the system,more and more enterprises choose the mergers and acquisitions for improving its strength rapidly.Tencent set foot in the marker of game for the first time since 2003,it has more than 10 years of the development in the marker of game.On June 16,2004,Tencent listed in the Hong Kong stock exchange main board(stock code 00700).When the game business income accounted for a large share of total,tencent games business for enterprise brought a large amount of cash flow,at the same time,it brought the possibility for trying other business for the enterprise.In 2011,Tencent put forward the concept of "Pan entertainment t" for the first time,Tencent games and reading group(tencent literature),tencent e-sports of anime,tencent pictures,tencent pan entertainment business matrix of interactive entertainment group.In 2015 the Chinese government report said,it will vigorously adjust the industrial structure,support the development of mobile Internet,electronic commerce and network financial.Tencent uses its own social user base and entry and introducted of mobile game products.It accelerated the layout of the mobile game market to build a more diverse revenue models to create.On June 21,2016,Tencent announced by consortium acquisition accounted for a total of up to about 84.3% of the Supercell securities,total consideration will be paid in three phase,expected to about $8.6 billion.Before the acquisition,Tencent in the field of game investment has covered the 10 countries and regions,the acquisition is the advance of tencent "Pan entertainment" strategy and expand mobile game market.The purpose of this paper is to analyse the motivation and performance of Tencent merging game developer Supercell,with the method of event analysis whether the investment for the expanding development of the enterprise has played a good role.This article will combine the motivation and performanc to analyse and judge whether the acquisition of Tencent is effective.Eventually form the conclusion,it supposed to provide opinions for Tencent and other Internet companies in mergers and acquisitions.