Research On The Motivation And Financial Risk Of Alibaba M&A Youku Tudou

In recent years,China's Internet industry has developed rapidly and the pace of industrial integration has accelerated significantly,becoming an important part of the new economy.In this context,Internet M&A events are on the rise in both quantity and transaction amount,and they are very active in the whole industry M&A in China.But since the advent of M&A,M&A have failed,according to Businessweek,which has seen a 70 percent failure rate.It is already a very complex process,and the Internet industry update speed,external competition,industry policy and the environment is not stable factors makes the development of the Internet enterprise itself has great uncertainty,adding to the merger and acquisition of the risk of failure.Compared with the rising merger and acquisition boom,such a high failure rate needs to be taken seriously.In recent years,China's GDP per head is higher and higher,the dominant position of material consumption gradually replaced by the spirit of consumption trend is becoming more and more obvious,the entertainment industry reflects the enormous economic value,behind of the growing importance of video web site.With the rapid development of the industry,a large number of investment opportunities have been brought,attracting the capital of all parties.The Internet giant Alibaba has also accelerated the layout of the entertainment industry.This article selects the Youku potatoes Alibaba merger and acquisition case,in the existing literature at home and abroad were reviewed,on the basis of full analysis of the whole process of M&A and M&A of financial risk analysis.Firstly,combining with the characteristics of video website in the Internet industry and its subdivision area,this paper analyzes the motivations of merger and acquisition from the perspective of merger and acquisition parties.Secondly,the specific financial risks in the whole process of merger and acquisition are studied.Combined with the particularity of video website business,first using the financial index is projected qualitative analysis prior to the acquisition of existing valuation risk,financing risk and payment risk in merger and acquisition and integration after the merger risk,then using the ZETA from the Angle of quantitative models to quantify financial risk before and after merger and acquisition.In addition,the paper also briefly analyzes the stock price fluctuation of the important point of acquisition to assist the risk.Finally,the financial situation,market competition and operating status of Youku Tudou under the support of Alibaba were also observed after the completion of the merger and acquisition,so as to judge the effect of the merger.Finally,aiming at the effect of the risk of M&A,correspondence analysis,inductive and feasible risk control measures,hope to be able to in M&A and M&A future enterprises provide empirical data and feasibility measures.