Research Of The Motivation And Performance Of Internet Video Enterprises After M&A

The market is changing rapidly under the market economy system,It’s too difficult to expand their scale for enterprises by themselves,and they can’t adapt to the rules of market survival.they will be driven out of the market sooner or later.So they began to look for alternatives.Mergers and acquisitions have become a "tool" for them to expand the scale of operations.Mergers and acquisitions will help improve the market share of enterprises,is conducive to seize the market opportunities,the enterprises will be more and more powerful.China started its reform and opening up in1978 and opened its doors to the market much later than western developed countries.However,in the past few decades,enterprises race each other and the business has undergone dramatic changes.The phenomenon of “big fish eat small fish” is becoming more and more common,the trend of merger and acquisition is becoming increasingly obvious.As a new industry,the online video industry has changed people’s way of life from all aspects,the occurrence of M&A cases every day.The industry is a daily example of mergers and acquisitions.Therefore,to be "outstanding" in this field,m&a is an inevitable rule of survival.The M & A of Youku and Tudou is representative in such an environment.Since the rise of Network video Enterprises in 2005,there have been several twists and turns in the market.Firstly,the government have improved the market access threshold,and then promote the protection of copyrighted content,the government’s a series of steps led to network video companies’ misery because of high royalties,These enterprises gone from bad to worse,It has eliminated a large number of small and medium-sized enterprises.Big companies are hoping to get out of the way by merging with such a strong partnership.In this context,on March 12,2012,Youku and Tudou announced that they would merge in a 100% stock-for-stock exchange,and Tudou would be delirious after the transaction.Why did the two giants choose to merge? Are mergers and acquisitions performing as expected,leaving them out of business? This article will study from these two aspects.Firstly,the author makes a brief exposition of the motives and performance theory of mergers and acquisitions,and provides a theoretical basis for the later analysis.And then make a specific analysis of the case,For this case,the author will analyze whether M&A have a synergistic effect from the motivation of M&A,in order to determine whether mergers and acquisitions motivation and M&A performance are consistent.The author will mainly adopt the method of traditional financial index method,the merger with both before and after merger of a few years of financial data analysis,focus on to reflect the corporate profitability,solvency,operation index,growth index calculation and analysis,the research mainly from the aspects of motivation and performance of the M&A.At the same time,combined with market research,the market share and industry development status of the enterprises are observed.The author hopes to provide some suggestions and references for other video enterprises through the rough introduction and research in this article.