Analysis On The Reasons And Financial Effects Of Qihoo 360 Privatisation And Delisting From The Market

Since 2010,companies represented by focus Media and Shanda Network have landed in overseas capital markets,not only to finance the development of funds,but also to enhance the visibility of enterprises.However,in recent years,these companies have set off a wave of privatization delisting again.In 2015 alone,30 companies completed privatization delisting,and the privatization delisting of Chinese listed shares has become the focus of theoretical and practical circles.On July 14,2016,Qihoo 360,a well-known Chinese-listed company on the Internet,successfully completed the largest privatisation transaction in the US stock market,Its delisting process in the US capital market has attracted more attention from Chinese and foreign investors.and the reasons for Qihoo 360's privatization and its financial effects deserve careful study.This article takes Qihoo 360 as the research object,uses the capital market correlation theory to analyze Qihoo 360's privatization reason and the financial effect.The content of this paper can be summarized into five parts: the first part is literature review,the theoretical basis of privatization delisting is analyzed,and the domestic and foreign scholars on privatization delisting research are summarized;The second part introduces Qihoo 360 and his privatisation process,analyzes Qihoo 360's development experience,business model,management strategy,stock price trend and its privatization process.The third part analyzes the reasons for Qihoo 360's privatization and delisting from both internal and external angles,taking Qihoo 360's stock price as the starting point,and combining the development of Qihoo 360's profit model strategic layout at that time.Through the analysis of the financial data of various listed agency costs,the final synthesis of the Chinese and foreign capital market environment in 2015 to analyze the internal and external reasons for the privatization of Qihoo 360;The fourth part is based on Qihoo 360's financial data,using DuPont analysis,three-factor model,trend analysis,index analysis,chart analysis and other methods to analyze the financial effect of Qihoo 360's privatization and delisting,and then analyze the influence on the enterprise value.Finally,the paper summarizes the full text and puts forward specific suggestions.Through this study,the following conclusions are drawn: first,the reasons for Qihoo 360's privatization can be summarized from the internal and external perspectives,and the external reasons for the privatization are the improvement of the domestic capital market,the support of the state policy,and the downturn of the US capital market;The internal reason is that the stock price is undervalued,the transaction cost needs to be reduced,and the company's operation strategy needs to be adjusted.Second,through the analysis of Qihoo 360's privatization and delisting financial effects,the privatization delisting has reduced Qihoo 360's agency cost,audit expenses,and the shareholders of the company have obtained better returns and improved the valuation of the company.It is conducive to the implementation of the national security strategy and the future development of the company.The case of Qihoo 360's privatization and delisting can provide reference for the company in the same industry and enrich the theoretical connotation of privatization and delisting of China's capital market.The study of this paper has certain theoretical and practical significance.