Research On Performance Evaluation Of Merger And Acquisition Of Riot Games Under Tencent's Internationalization Strategy

With the deepening of globalization and the gradual improvement of China's economic system,many domestic enterprises have strong strength,resulting in fierce competition.The near-saturated market situation can no longer meet the development needs.Therefore,those entrepreneurs with an international strategic vision gradually turn their eyes to the global market,which has unlimited business opportunities,and promote their overseas strategy.The internationalization strategy formulated by an enterprise will greatly affect its own internationalization process,and even determine the trend of the enterprise in the future internationalization development process.Today,the transformation of social and economic structure and the improvement of people's demand for cultural and entertainment life have made the Internet industry develop rapidly and become a weapon to change and connect the whole world.It has a very close relationship with all walks of life.After sorting out the literature,it is found that there are few studies on the impact of corporate strategy on business performance in the field of Internet industry.In the context of China's reform and opening-up policy,emphasizing the "going out" strategy,from attracting foreign investment to encouraging large domestic enterprises to explore international markets and overseas investment,many Internet companies begin to study and formulate their own internationalization.Strategies,therefore,this paper takes Tencent,one of China's Internet giants,which has accumulated over 50 billion yuan of overseas investment and mergers and acquisitions in 10 countries and regions,including Asia,Europe and the United States,as the research object.Firstly,it introduces macro-policy and economic background,and introduces related concepts.Then it analyses the process of formulating and implementing Tencent's internationalization strategy,and how to allocate overseas market share.Taking the share,we find that Tencent builds its own dominant game industry chain in the form of investment and equity participation,and uses social means QQ and WeChat to build an open Internet ecosphere,which lays a solid foundation for further internationalization.Finally,we use the case of Riot Games to analyze the performance of Tencent's internationalization strategy through overseas mergers and acquisitions and investment means.In view of the problems existing in the case,this paper summarizes the experience and lessons,and puts forward reasonable suggestions for many large-scale domestic Internet enterprises to go abroad in the future,that is,to closely follow the theoretical direction of national politics,to implement the differentiated strategic model,and to combine the motive of M&A with the performance.